(Reuters) – Wall Street’s main indexes rose on Wednesday as Federal Reserve Chair Jerome Powell said the domestic economy was in good shape and the central bank saw a “sustained expansion” ahead.
A screen broadcasts the House Intelligence Committee hearing as part of the impeachment inquiry into U.S. President Donald Trump, as traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 13, 2019. REUTERS/Brendan McDermid
This helped ease nerves on Wall Street which opened lower after President Donald Trump on Tuesday offered no new details on trade negotiations with China.
Powell’s comments come after the Fed lowered borrowing costs three times this year to cushion the world’s largest economy from a global slowdown. He said the full impact of the interest rate cuts were yet to be felt, as he testified before the Congress.
Meanwhile, data showed U.S. consumer prices rebounded more than expected in October and underlying inflation picked up.
“There’s still enough gas in the tank to keep the economy moving,” said Jeff Kravetz, regional investment director at U.S. Bank’s private wealth management unit.
Six of the 11 major S&P 500 sectors were higher led by gains in defensive names such as utilities .SPLRCU, real estate .SPLRCR and consumer staples .SPLRCS, indicating investor caution.
An impeachment inquiry on President Donald Trump, as well as geopolitical tensions including the escalating anti-government protests in Hong Kong are factors that investors are keeping a close eye on.
The three major U.S. stock indexes have had a solid start to this month on the back of a strong corporate earnings season and hopes of a