Stock Traders Cheer Powell’s Risk-Friendly Shift: Markets Wrap
- He signals downshift likely next month, more hikes to come
- Says rate to be ‘somewhat higher’ than thought in September
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Stocks rallied across the board as Jerome Powell signaled a slowdown in the pace of tightening as early as December, while indicating more hikes to fight inflation. Bond yields slumped with the dollar.
Amid all the optimism, the S&P 500 hit a two-month high, notching the longest monthly winning streak since August 2021. The gauge also breached its 200-day moving average: a threshold seen by some analysts as heralding more gains. The Nasdaq 100 jumped about 4.5% and the Dow Jones Industrial Average was up 20% from its September low -- meeting the bull-market definition.