S&P 500 ends 3-day losing streak. Dow jumps 700 points after Powell signals smaller rate hikes; European markets close higher after euro zone inflation data
Stocks saw broad gains Wednesday after Federal Reserve Chair Jerome Powell confirmed that the central bank will slow the pace of its aggressive rate-hiking campaign that has weighed on markets.
The Dow Jones Industrial Average closed up 737.24 points, or 2.18%, to 34,589.77. Meanwhile, the tech-heavy Nasdaq Composite jumped 4.41% to 11,468.00. The S&P 500 added 3.09% to 4,080.11.
Shares of CrowdStrake dropped 19% after the cybersecurity provider said new revenue growth is weaker than expected. The company did beat estimates on the top and bottom lines in its most recent quarterly results. Stifel downgraded the stock to hold from buy after the earnings report.
The pan-European Stoxx 600 closed up 0.6%, totaling a monthly gain of around 6.1%. Household goods added 2.3% to lead gains as almost all sectors and major bourses traded in positive territory. Chemicals bucked the trend, down 0.2%.
New data out Wednesday showed that euro zone inflation dropped by more than expected in November, fueling market hopes that record-high price growth across the bloc has peaked and the European Central Bank will begin slowing its interest rate hikes next month.
Source: CNBC, Investing.com