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Dow surges nearly 600 points as Powell testimony eases rate-hike fears and investors watch Ukraine

Phil Rosen   

Dow surges nearly 600 points as Powell testimony eases rate-hike fears and investors watch Ukraine
  • US stocks rallied after comments from Fed Chair Jerome Powell indicated flexibility on rate hikes amid Russia's war on Ukraine.
  • That appeared to ease concerns that the central bank will tighten monetary policy aggressively as inflation remains high.

US stocks rallied Wednesday after Fed Chairman Jerome Powell indicated flexibility on rate hikes amid Russia's war on Ukraine.

During an appearance before the House Financial Services Committee, he also backed a 25-basis-point rate increase later this month, though a more aggressive move could still be on the table for later this year, and noted the economy is expanding with enough momentum to withstand higher rates.

He also said the Fed will "proceed carefully" and stressed being "nimble in responding to incoming data and the evolving outlook." That appeared to ease concerns that the central bank will tighten monetary policy aggressively as inflation remains high.

Here's where US indexes stood as the market closed at 4 p.m. on Wednesday:

As war continued to rage in Ukraine, the Russian stock market remained closed for the third straight day. The Russian central bank also cracked down on foreigners attempting to move money overseas, and banned non-Russians from collecting bond payments.

The Vice Prime Minister of Ukraine, meanwhile, said the country is accepting dogecoin donations, and urged Elon Musk to "save lives from Russian invaders."

Elsewhere in the market, Ford stock jumped more than 8% after the legacy automaker announced plans to split EVs and gas-powered cars into separate businesses.

Fundstrat's Tom Lee said the stock market is "in the eye of the storm" of uncertainty, but said it's already hit bottom and is poised to bounce.

Oil prices shot up to the highest levels since 2011. West Texas Intermediate crude is up more than 8.64% to $112.10 a barrel. Brent crude, the international benchmark, is up about 9.47% to $114.92 a barrel.

Gold slipped by 0.53% to 1,933.50 per ounce. The 10-year yield soared nearly 19 basis points to 1.90%.

Bitcoin dropped 2.02% to $43,751.10

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