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Indices in the US, which started with a drop at the open due to selling pressure in global markets, rebounded after statements by Fed Chairman Powell at the Committee on Financial Services of the Camera.
Indices in the United States reversed their losses when Fed Chairman Jerome Powell reaffirmed the view that the economy needed support, while oil prices and government bond yields also rose.
Energy and industrial companies pioneered the S&P 500 Index gains, offsetting weakness in tech stocks.
Bank stocks also rose, pushing the industry gauge to its highest level since 2007. US officials saying Johnson & Johnson’s Kovid-19 vaccine is safe and effective have also been a factor in the rise. Tesla Inc. rose after Cathie Wood of Ark Investment Management said it had bought the stock.
Powell, giving a presentation to senators, said the US economy has a long way to go to reach maximum employment and the Fed’s inflation target, and said he wanted to reach a compromise on this issue.
Stock investors are reviewing forecasts for a post-epidemic surge in economic activity and corporate earnings, with concerns that higher interest rates could hamper the attractiveness of stocks.
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