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Investors React as U.S. Stocks Roar Past Powell’s Hawkish Pivot

  • Powell’s hawkish shift not enough to discourage dip-buying
  • Omicron triggered ‘shot-first, ask questions later’ reaction
Jerome Powell
Jerome PowellPhotographer: Al Drago/Bloomberg

Jerome Powell’s hawkish pivot shocked financial markets. A week later, stocks are higher.

The S&P 500 staged its biggest rally since March to wipe out losses from the past week. The speculative fringe that was a smoldering wreck Friday was soaring Tuesday. An index of meme stocks rallied more than 4%, while one composed of airlines added 1.6%. A gauge of newly public companies advanced more than 4%, SPACs jumped more than 2% and even cryptocurrencies rallied, with Bitcoin powering back above $51,000.