Wall Street: Fed Chief's Speech, Mr. Powell, Welcomed by Investing.com

Investing.com – Wall Street stocks jumped right after the release of Fed Chairman Jerome Powell's text at noon, and many said the remarks indicated there was less need for rate hikes regular in 2019.

The index jumped more than 500 points, up about 2.2% at 2:20 pm (19:20 GMT).

The increase was 1.8% and the gain was 1.3%.

"Interest rates are still low by historical standards and they stay just below the wide range of estimates of the level that would be neutral for the economy – that is, say, no acceleration or slowdown in growth, "said Powell in remarks prepared in New York.

Many investors believe the Fed can end its steady tightening cycle once the neutral rate has been reached.

Powell said that "the Fed's gradual pace of raising interest rates has been a risk-balancing exercise," but added "there is no predefined policy pathway".

The shares were already in the green before Powell's boost after White House economic adviser Larry Kudlow announced Tuesday the possibility that the US and China reach a trade deal.

"Trade has been a problem for a long time and any reference to resolving the Sino-US trade dispute could accelerate global growth," said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh.

Salesforce.com's quarterly quarterly earnings reports, rising chip values, the FAANG group, and shares of Chinese companies listed in the United States helped technicians.

Salesforce.com (NYSE 🙂 jumped 8%.

Tiffany & Co (NYSE 🙂 plunged 11% after quarterly sales of high-end jeweler's comparable stores missed estimates.

– Reuters contributed to this report.