Wall St. gains ground as Powell’s testimony eases investors’ concerns

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On Tuesday, a slew of Wall St. stock indices had rounded off the session in the black, clawing back sharply from previous session’s losses, as a Congressional hearing of US Fed Chair Jerome Powell did not unmask any major surprise.

Aside from that, a weaker Us Dollar coupled with a retreat in US Treasury Yields had spurred up appetite for riskier assets, helping tech-heavy Nasdaq lead the tally of gains. In point of fact, in the day’s large-scale gains in the Wall Street was almost entirely galvanized by Powell’s testimony that had highlighted the US Central Bank’s intent to put the kibosh on a stabbing inflation surge, however, Fed’s Powell had botched to address how the US Central Bank would downsize its nearly $9 trillion worth of assets.

Besides, voicing an utterly dovish tone, Powell also had been quoted saying that any kind of restrictive monetary policy to tame a sky-scrapping inflation might be miles away, though, Powell had pledged to a higher interest rate in order to maintain the growth momentum of a roaring US economy.

In context of such ambiguous remarks on US Fed’s planned trimming of US Central Bank’s holdings, US Treasury yields fell from a nearly two-year peak, while US Dollar had largely echoed the tone of Treasury Yields, stoking investors’ bet to jump on the bandwagon of a bargain hunt frenzy following hefty losses stomached since Wednesday’s FOMC Minutes.

After tumbling as much as 1 per cent earlier in the day, tech stocks gained ground after Powell’s testimony and Nasdaq ended up the session 1.41 per cent higher.

Wall St. gains after dovish Powell remarks

Citing statistics, in the day’s Wall St.

closing bell, Dow gained 0.51 per cent to 36,252.02, and benchmark S&P 500 surged 0.92 per cent to 4,713.07, while tech-heavy Nasdaq skyrocketed 1.41 per cent to 15,153.45. Meanwhile, addressing to dovish remarks from US Fed Chair Jerome Powell, a senior manager of trader strategy at TD Ameritrade in Chicago, Shawn Cruz said, “The initial concern was the Fed would upset the pace of the recovery…He's not just going to try and crush inflation without regarding the other effects that could have on the economy”.