The stock market moved higher on Tuesday in an attempt to bounce back after six consecutive weeks of heavy losses, as investors digested the latest comments from Federal Reserve Chair Jerome Powell, who pledged to keep raising interest rates until inflation starts “coming down.”
Stocks widely rebounded, paring back some of the steep losses from last week: The Dow Jones Industrial Average rose 1.3%, over 400 points, while the S&P 500 jumped 2% and the tech-heavy Nasdaq Composite 2.8%.
The market broadly moved higher—with ten out of eleven sectors in the S&P 500 posting gains, as shares of technology stocks and financials led Tuesday’s gains.
Markets initially moved higher amid a solid retail sales report and news that China could soon be taking steps to ease lockdowns in cities such as Shanghai, with optimism about reopening helping boost prospects for global economic activity.
Stocks also rose after Fed Chair Jerome Powell told the Wall Street Journal in an interview that the central bank is determined to keep hiking interest rates in an effort to bring surging inflation back down to healthy levels.
“We have both the tools and the resolve to get inflation back down,” Powell said in the interview, adding that the Fed “won’t hesitate” to keep raising rates until they see consumer prices moderate—and “until we do, we ‘ll keep going.”
Shares of several companies jumped on Tuesday, following news that famed investor Warren Buffett’s Berkshire Hathaway disclosed new stakes amid a $51 billion stock buying spree last quarter: Paramount surged 15%, Citi 7% and Ally 6%.