U.S. stocks jumped before Wednesday’s close after Federal Reserve Chair Jerome Powell delivered his highly-anticipated testimony to Congress. He confirmed his stance that interest rate cuts are likely this year, explaining: “If the economy evolves broadly as expected, it will likely be appropriate to begin dialling back policy restraint at some point this year.”
Stocks on the tech-heavy Nasdaq Composite surged by 0.6%, thereby recovering from a sharp slide during the previous session. The S&P 500 advanced by 0.5%, while the Dow Jones Industrial Average posted a 0.2% gain. Among the biggest movers was the New York Community Bank. While the stocks initially declined following a report that the bank is searching for investors to purchase stock in the company, shares surged by 7% after the bank announced a $1 billion infusion in the company as well as a new CEO.
Despite significant gains for the Nasdaq Composite overall, several major tech stocks closed Wednesday in the red. EV giant Tesla lost ground, while Apple stocks fell for a sixth consecutive session.