Dow surges 431 points as investors digest fresh Powell comments on inflation and rates
Andrew Harnik/AP Photo
- US stocks jumped Tuesday, with the Dow gaining more than 400 points.
- Federal Reserve Chairman Jerome Powell said he would support rate hikes until inflation is tamed.
- Meanwhile, the US is expected to block Russian bond payments and let a key sanction waiver expire May 25, per Bloomberg.
US stocks rallied Tuesday and investors took in comments from the Federal Reserve's Jerome Powell during a Wall Street Journal event.
The Fed Chair said the US central bank will support interest rate hikes until inflation is tamed.
"If that involves moving past broadly understood levels of neutral we won't hesitate to do that," Powell told the Journal in a livestream interview. "We will go until we feel we're at a place where we can say financial conditions are in an appropriate place, we see inflation coming down."
Here's where US indexes stood as the market closed 4:00 p.m. on Tuesday:
- S&P 500: 4,088.85, down 2.02%
- Dow Jones Industrial Average: 32,654.59, up 1.34% (431.17 points)
- Nasdaq Composite: 11,984.52, 2.76%
The Securities and Exchange Commission just charged a US subsidiary of investment giant Allianz in a multibillion dollar fraud scheme that targeted pensions and other investors. The regulator also brought charges against three men and accused them of securities fraud.
In stocks, crypto exchange Coinbase surged 14% after outlining a plan to slow down hiring during the crypto market downturn.
Paramount jumped 16% following Berkshire Hathaway's reveal of a $2.6 billion stake in the media company.
Meanwhile, Bloomberg reported Russia may be facing a historic default soon as the US Treasury may let a key sanction waiver expire, which would block Moscow's ability to make dollar payments.
Overseas, the euro has been losing ground against the dollar, down nearly 14% against the greenback in the past year. Experts predict the two currencies could reach parity for the first time in 20 years.
Oil slipped after hitting a seven-week high, with West Texas Intermediate down 1.63% to $112.32 a barrel. Brent crude, the international benchmark, moved lower 2.16% to $111.77 a barrel.
Gold edged lower 0.02% to 1,813.70 per ounce. The 10-year yield rose 0.98 basis points to 2.977%.
Bitcoin climbed 1.65% to $30.172.59.