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Investors loved Powell’s words, and Wall Street recovered

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The Dow Jones Industrial Average closed 1.08% higher at 3,5927.43 points. On the 8th of November, he remembered that he played in 36565.73 points for the first time in his history.

The Standard & Poor’s 500 advanced 1.63% to close at 4,709.85 points. On November 22, it created the highest value ever, at 4,743.83 points.

For its part, the Nasdaq Technology Index rose 2.25% to settle at 15,565.58 points. Remember that in intraday trading on November 22nd, it reached a new all-time high of 16,212.23 pips.

Stocks on the other side of the Atlantic began to reverse lower as soon as it was announced that the Federal Reserve would double the pace of withdrawal of (“taper”) pandemic stimulus, which includes asset purchases.

In addition, the Fed has indicated that it may raise key interest rates three times next year, when economists have indicated that it will raise interest rates only twice on the fed funds.

However, when Central Bank Chairman Jerome Powell spoke, investors liked what they heard and Wall Street returned to gains.

There were concerns that traders might panic if Powell said the Fed would accelerate tapering and raise interest rates. However, the market seemed satisfied that the head of the central bank no longer used the term “transitional” to describe price hikes. “It’s a sign that the Fed is taking inflation seriously,” CNN asserts.

Traders believe that the Fed will be able to fight rising inflation without stifling economic growth, which led to a rebound in stocks.

In addition, Powell said that the US economy will be able to withstand the omicron variable impact of the coronavirus, which also helped improve market sentiment.

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