Stocks on the New York Stock Exchange resumed their rally on Wednesday following a pause during the previous session after a top Federal Reserve official hinted that the central bank is done with its interest rate hikes and is now open to rate cuts.
The benchmark S&P 500 rose 0.5% while the tech-heavy Nasdaq Composite spiked 0.7%. Stocks on the Dow Jones Industrial Average edged 0.2% higher. Bonds also extended gains, with the 10-year Treasury yield dropping approximately six basis points to around 4.28%.
Investors’ hopes for an end to the Fed’s tight fiscal policy were raised after Fed governor Christopher Waller claimed that there was “no reason” to keep rates high. Chicago Fed president Austan Goolsbee echoed this sentiment, expressing concern about keeping rates “too high for too long.”