Stocks on the New York Stock Exchange closed marginally higher on Wednesday after Federal Reserve Chair Jerome Powell confirmed that the Fed is likely to implement interest rate cuts later this year, thereby boosting investor confidence.
The benchmark S&P 500 edged 0.1% higher, while the tech-heavy Nasdaq Composite rose by about 0.2%. The Dow Jones Industrial Average slipped lower by 0.1%.
Powell spoke at Stanford University on Wednesday, explaining that while inflation is on a “bumpy” pathway toward the Fed’s 2% target, the central bank is nevertheless set to introduce rate cuts. While stocks enjoyed a rampant rally to start the year, they entered the red last week following a dent in consumer confidence. The S&P 500 has gained almost 10% for the year to date.