Powell's Balanced Act Propels Stocks Higher

Powell's Balanced Act Propels Stocks Higher
Powell's Balanced Act Propels Stocks Higher

Stocks Rise on Powell's Balanced Rate Outlook

U.S. stock indices gained ground on Wednesday, fueled by comments from Federal Reserve Chairman Jerome Powell and positive earnings reports.

Powell's speech at the Stanford Business, Government and Society Forum struck a balanced tone. While acknowledging the economy's continued strength, he highlighted that risks associated with premature or delayed interest rate adjustments are balancing out. He expressed confidence that inflation would eventually return to the target level of 2%.

Dow Jones and Nasdaq Lead Gains

The Dow Jones Industrial Average rose 0.2%, supported by gains in Caterpillar and IBM. The S&P 500 advanced 0.4%, while the Nasdaq composite led the major indexes with a 0.5% increase. Industrials and energy sectors performed well, while consumer staples and utilities lagged.

Nvidia Recovers from Earthquake Jitters

Despite initial losses, chipmaker Nvidia reversed course and rose slightly. The company's foundry partner, Taiwan Semiconductor, experienced a temporary shutdown due to an earthquake in Taiwan. However, Taiwan Semiconductor's shares remained resilient, gaining 1.3%.

Tesla Rebounds Despite Analyst Concerns

Electric vehicle manufacturer Tesla clawed back despite a negative analyst report from Deutsche Bank. The analyst cited concerns about slowing demand and high inventory levels.

Earnings Movers

Dave & Buster's surged after reporting solid quarterly results, while Cal-Maine gapped up following a period of consolidation. On the downside, Ally Financial was downgraded by JPMorgan, and ELF Beauty trigge

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