The Dow Jones Industrial Index rose 1.08% to 35,927.43 points. Recall, on November 8, for the first time in his history, he won back 36,565.73 points.
Standard & Poor’s 500 added 1.63% to 4,709.85 points. On November 22, he set the highest value on record – 4743.83 points.
For its part, the technological Nasdaq Composite rose in price by 2.25% to 15,565.58 points. Recall that during intraday trading on November 22, it reached a new all-time high of 16,212.23 points.
Equities on the other side of the Atlantic began to turn lower as soon as it was announced that the Fed would double the pace of removing pandemic stimulus (“narrowing”), which would involve buying assets.
In addition, the Federal Reserve made it clear that it could raise key interest rates three times next year, when economists pointed to only two increases in federal funds rates.
However, when central bank president Jerome Powell spoke, investors liked what they heard and Wall Street returned to profits.
There were concerns that traders would panic if Powell said the Fed would accelerate cuts and raise interest rates. However, the market looked pleased that the central banker no longer used the term “transitional” to describe price increases. “This is a sign that the Fed is serious about inflation,” stresses CNN.
Traders believe that the Fed will be able to fight rising inflation without stifling the economic growth that has supported the stock market.
In addition, Powell said the US economy will be able to withstand the impact of the omicronic variant of the coronavirus, which has also helped improve market sentiment.
