The New York Stock Exchange (NYSE) turned upward after Jerome Powell, chairman of the U.S. Federal Reserve (Fed), declared “Fighting Inflation.”
The Dow Jones 30 Industrial Average of the New York Stock Exchange closed at 36,252.02, up 183.15 points (0.51%) from the previous day on the 11th (local time).
The Standard & Poor’s 500 index rose 42.78 points (0.92%) to 4713.07, and the technology-oriented NASDAQ index rose 210.62 points (1.41%) to 15,153.45, respectively.
As a result, the S&P 500 index ended its downward trend for five consecutive trading days, and the NASDAQ index, which closed slightly higher after overcoming a 2.7% plunge the previous day, continued its upward trend for two consecutive days.
Investors on the NYSEocused their attention on Powell confirmation hearing. At the hearing, Chairman Powell stressed his willingness to curb inflation, saying, “If we have to raise interest rates further,” hinting that he could start reducing the Fed’s balance sheet earlier than before.
Investors seem to be rather relieved as Powell’s mention is merely a reaffirmation of the already known policy.
The 10-year U.S. government bond rate, which had been on the rise at the beginning of the year, fell 34bp (1bp = 0.01 percentage points) from the previous day, which also had a positive impact on investor sentiment.
As a result, investors seemed to stop selling technology stocks and start buying low-priced stocks. Amazon rose 2.4%, while Apple and NVIDIA rose 1.7% and 1.5%, respectively.