Stocks Surge, Gold Hits New All-Time High, Bitcoin Reclaims $67,000 As Powell Reassures Wall Street: What’s Driving Markets Wednesday?
Powell #Powell
Markets rallied across the board on Wednesday, erasing the uptick in volatility seen in the previous session, following reassurances from Fed Chair Jerome Powell regarding the Fed’s willingness to ease monetary policy in 2024 if inflation consistently moves toward the 2% target.
On Wall Street, all indices saw gains in midday trading, with the tech-heavy Nasdaq 100 leading the way, up by 1.2%, outperforming both the S&P 500, which rose by 0.8%, and the Dow Jones, which saw a 0.6% increase. Each of the eleven sectors comprising the S&P 500 reported gains, indicating a widespread rally in the stock market.
Small-cap stocks also saw notable gains, with the iShares Russell 2000 ETF (NYSE:IWM) up by 1%, poised to recover losses from Tuesday.
Among the standout performers within the Magnificent Seven, Nvidia Corp. (NASDAQ:NVDA) once again led the pack, up by over 3%, fueled by a broader surge in the semiconductor industry.
Moreover, the bullish sentiment spilled over into other asset classes, with bonds, commodities, and cryptocurrencies all benefiting from the decline in the greenback and Treasury yields.
Gold, represented by the SPDR Gold Trust (NYSE:GLD), surged by 0.8%, surpassing the $2,150/oz mark and marking new all-time highs. West Texas Intermediate (WTI) crude rose by 2.4% to $80 per barrel, reaching the highest level in four months, following EIA data revealing a lower-than-expected surge in weekly inventories.
Bitcoin (CRYPTO: BTC) reclaimed $67,000, bouncing back following a drop to $60,000 on Tuesday shortly after reaching record highs.
Wednesday’s Performance In US Major Indices, ETFs Major IndicesPrice%Nasdaq 10018,103.901.2%Russell 20002,073.721.0%S&P 5005,121.780.8%Dow Jones38,776.170.5%
The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.8% to $511.45, the SPDR Dow Jones Industrial Average (NYSE:DIA) surged 0.5% to $388.19 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) rallied 1.2% to $441.15, according to Benzinga Pro data.
The Technology Select Sector SPDR Fund (NYSE:XLE), was the top performer, up by 1.4%, while the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) slightly lagged behind, up by 0.2%.
Wednesday’s Stock Movers
Now Read: Powell Stresses Need For ‘More Data’ Before Considering Rate Cuts, Downplays Recession, Commercial Real Estate Risks
Image created using artificial intelligence with Midjourney.