S&P 500 Gains Ground After Powell’s Comments On Inflation And The Labor Market

Powell's Remarks Supported Stock Prices

The S&P 500 increased following Powell's speech since there were no surprises in his statements.

The time to slow down rate rises may arrive as soon as the meeting in December, according to Powell. It is likely that keeping policy at a restrictive level for a while will be necessary to restore price stability.

Powell often made the same points that speakers from the Fed made in their most recent public statements. To ensure that inflation is under control, the Fed will need to raise interest rates to a constraining level and then maintain them there for a while.

Market attention is centered on a probable slowdown in the rate of rate increases. It appears that traders anticipate that inflation will start declining quickly and that the peak rate won't be excessive.

Following Powell's comments, Treasury yields decreased, which boosted tech stocks. The NASDAQ Composite experienced significant upward momentum and attempted to stabilize above the 11,150 mark. In today's trading session, Alphabet, Microsoft, Tesla, Meta, NVIDIA, and more all had gains of over 2%.