1. On Wednesday, Federal Reserve Chair Jerome Powell announced that the policy rate is “just below” estimates of a level that would not brake nor boost a healthy economy. Many believe this means that the Fed’s three-year tightening cycle may soon be ending.
2. Accordingly, the announcement resulted in a rise in the United States stock markets.
3. Specifically, the S&P 500 and the Dow Jones Industrial Average saw their biggest gains in the last 8 months. The Nasdaq Composite saw its largest gain in just over a month.
4. The Dow rose 617.7 points, or 2.5 percent, to 25,366.43. The S&P 500 rose 61.61 points, or 2.30 percent, to 2,743.78. The Nasdaq rose 208.89 points, or 2.95 percent, to 7,291.59.
5. In the Nasdaq, 10 of the 11 sectors (the 1 exception being utilities) grew, including a large gain in the technology sector, which grew over 3 percent.