Wall Street ended sharply higher on Wednesday after Federal Reserve Chair Jerome Powell signaled the U.S. central bank is likely to raise interest rates less than some investors feared.
Powell said he was inclined to support a 25 basis point hike in March, which eased concerns about the possibility of a more aggressive rate hike.
Traders now see a 95% probability of a 25 basis point rate hike in March.
The S&P 500 index closed up 1.86% at 4,386.54 points. The Dow Jones rose 1.79% to 33,891.35 points. The Nasdaq Composite technology index rose 1.62% to 13,752.02 points.
All 11 S&P 500 sector indices have advanced. Financials jumped 2.6% after falling sharply so far this week. The bank index rebounded 3% after hitting its lowest since September 2021 in the previous trading session.
Energy stocks resumed their bullish trajectory. The S&P 500 energy index gained 2.2% after Brent crude hit nearly eight-year highs after Western sanctions halted shipping of Russian-exported commodities.
Source: CNN Brasil
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