All three key indices of the New York Stock Exchange strengthened significantly during Wednesday. Investors reacted to the Federal Reserve Governor’s (Fed) words about the ideal interest rate hike.
The largest gain during Wednesday’s trading was recorded by the main index of the New York Stock Exchange S&P 500, which added 1.86 percent. The Dow Jones Industrial Average rose only slightly slower (by 1.79 percent) and the Nasdaq technology index firmed by 1.62 percent.
Investors took positively Fed chief Jerome Powell’s comments in the US House of Representatives, where he said, among other things, that a 0.25 percentage point interest rate hike in March would be ideal. Powell thus dispelled speculation that the Fed would want to raise interest rates by 0.5 or even 1 percentage point. Traders now expect an increase of just a quarter of a percentage point with a 95% probability.
Financial sector stocks were the biggest gainers on Wall Street on Wednesday, with banks even adding three percent after hitting their lowest level since September last year. Energy titles also did well, firming by 2.2 percent.
