Dow surges 431 points as investors digest fresh Powell comments on inflation and rates
Federal Reserve Chairman Jerome Powell appears during a Senate Banking Committee hearing on Capitol Hill in Washington on Tuesday, November 30, 2021. Andrew Harnik/AP Photo
US stocks surged Tuesday with the Dow gaining more than 400 points.
Federal Reserve Chair Jerome Powell said he would support rate hikes until inflation is tamed.
Meanwhile, the US is expected to block Russian bond payments and let a waiver of key sanctions expire on May 25, according to Bloomberg.
U.S. stocks rallied Tuesday as investors listened to comments from the Federal Reserve's Jerome Powell during an event hosted by the Wall Street Journal.
The Fed chair said the Federal Reserve will support rate hikes until inflation is tamed.
"If that means crossing widely understood neutral levels, we will have no hesitation in doing so," Powell told the Journal in a livestream interview. "We're going to go until we feel like we're in a place where we can say financial conditions are in a proper place, we see inflation coming down."
Here are the US indices as the market closed at 4pm. on Tuesday:
S&P 500: 4,088.85, down 2.02%
Dow Jones Industrial Average: 32,654.59, up 1.34% (431.17 points)
Nasdaq Composite: 11,984.52, 2.76%
The Securities and Exchange Commission has just indicted a US subsidiary of investment giant Allianz over a multibillion-dollar fraud scheme that targeted pensions and other investors. The regulator also brought charges against three men, accusing them of securities fraud.
In shares, crypto exchange Coinbase is up 14% after outlining a plan to slow hiring during the crypto market downturn.
Paramount rose 16% after Berkshire Hathaway announced a $2.6 billion stake in the media company.
Meanwhile, Bloomberg reported that Russia could potentially face a historic default if the US Treasury allowed a key sanctions waiver to expire, which would block Moscow's ability to make dollar payments.
Overseas, the euro has lost ground against the dollar, falling nearly 14% against the greenback over the past year. Experts predict that the two currencies could reach parity for the first time in 20 years.
Oil slipped after hitting a seven-week high, with West Texas Intermediate falling 1.63% to $112.32 a barrel. Brent crude, the international benchmark, fell 2.16% to $111.77 a barrel.
Gold fell 0.02% to 1,813.70 an ounce. The 10-year yield rose 0.98 basis points to 2.977%.
Bitcoin climbed 1.65% to $30,172.59.
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