NY Stock Market Rallies on Powell's Remarks... Nasdaq Surges 1.4%

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market all rebounded as they were reassured by the remarks of Jerome Powell, Chairman of the Federal Reserve (Fed).

On the 11th (local time), the Dow Jones Industrial Average rose 183.15 points (0.51%) to close at 36,252.02, the S&P 500 increased 42.78 points (0.92%) to 4,713.07, and the Nasdaq rose 210.62 points (1.41%) to finish at 15,153.45.

The major indices started mixed as they were cautious about Chairman Powell's remarks, but all successfully rebounded in the afternoon after Powell's testimony began.

Not only the Nasdaq, which overcame a decline of more than 2% the previous day to close higher, but also the Dow and S&P 500 all rose, bringing warmth to the market after a long time.

Chairman Powell showed a strong determination to curb inflation through interest rate hikes and quantitative tightening, but there were no remarks that would stimulate the market.

Darren Schuringa, CEO of Asymmetric ETF, explained, "Powell's remarks calmed the market." He evaluated, "Powell showed a step back regarding quantitative tightening, which is the market's biggest concern."

Reflecting Powell's remarks, the 10-year Treasury yield also fell to 1.73%.

Amazon.com rose 2.4%, and Apple closed up 1.7%. Tesla also increased by 0.59%. Semiconductor stocks such as AMD and Nvidia, which had large declines, also showed strength.

International crude oil (WTI) surpassed the $80 per barrel mark for the first time this year, causing energy-related stocks to surge collectively. Occidental Petroleum rose by 8%.

Food-related companies were weak as concerns spread that earnings could be negative due to the impact of the Omicron variant. On this day, Albertsons fell 9% after warning about future earnings, dragging down investor sentiment across the sector. Supermarket chain Kroger fell about 3%, and Walmart also declined by 1%.