'Welcome news': Wall Street surges on Fed speech

“He’s acknowledging that if you make an interest rate move today, you’re not really going to feel the effects of it for 12 to 18 months,” said Jack Ablin, chief investment officer of Cresset Wealth Advisors.

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“Global central bank tightening was probably the biggest risk that equity investors faced over the next four quarters, so having the Fed chairman come out and suggest they’re almost done is welcome news.”

The S&P 500 index surged 44 points, or 1.7 per cent, to 2,727 as of 3 p.m. Eastern time. The S&P 500 has gained 3.6 per cent this week, but would still need to rise another 7 per cent to return to its record high from late September.

The Dow Jones Industrial Average jumped 488 points, or 2 per cent, to 25,236. The Nasdaq composite rose 159 points, or 2.3 per cent, to 7,242. The Russell 2000 index of smaller-company stocks gained 29 points, or 2 per cent, to 1,522.

After an initial decline, bond prices turned higher, sending yields lower. The yield on the 10-year Treasury note fell to 3.04 per cent from 3.07 per cent earlier in the day. It stood at 3.05 per cent late Tuesday. The yield on the 2-year note fell to 2.79 per cent from 2.81 per cent.

Jerome Powell, chairman of the U.S. Federal Reserve.Credit:Bloomberg

The dollar weakened, which sent metals prices higher. The ICE US dollar index lost 0.6 per cent.

Customer-management software developer Salesforce climbed 8.5 per cent to $US138.39 after its earnings and revenue were stronger than analysts expected. That helped pull technology companies higher. Software maker Adobe rose 6.4 per cent to $US247.15. Apple picked up 2.9 per cent to $US179.31 and Microsoft rose 2.7 per cent to $US110.

Tiffany skidded 12 per cent to

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