Stock Market Today: Powell Speech Sparks Massive Stock Rally
The Fed chair suggested smaller rate hikes are likely going forward, but cautioned that inflation is still too high.
There was plenty for investors to focus on Wednesday, including a weaker-than-expected November ADP jobs report, a stubbornly high level of job openings and an upwardly revised reading on second-quarter gross domestic product (GDP). However, the main event was a mid-afternoon speech from Federal Reserve Chair Jerome Powell – and stocks reacted in a big way to what the head central banker had to say.
During a speech at the Brookings Institution today, Powell said "the time for moderating the pace of rate increases may come as soon as the December meeting." However, he balanced this dovish tone by adding that "the path ahead for inflation remains highly uncertain," and that "history cautions strongly against prematurely loosening policy."
"Although much of Chair Powell's comments were benign and predictable, investors could be spooked with the Chair's admission that 'the path ahead for inflation remains highly uncertain,'" says Jeffrey Roach, chief economist for LPL Financial. "Overall, this speech will likely be bullish for the markets in the near term."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And that was certainly the case today, with stocks moving notably higher in late-afternoon trading. The tech-heavy Nasdaq Composite, whose components are most sensitive to interest rates, surged 4.4% to 11,468, the broader S&P 500 Index added 3.1% to 4,080, and the blue-chip Dow Jones Industrial Average rose 2.2% to 34,589. All three indexes also closed higher for November, marking their second straight month of gains.
Wall Street's Favorite Oil Stocks
Stocks weren't the only corner of the market seeing outsized gains today. U.S. crude futures jumped 3% to $80.55 per barrel after data showed domestic crude inventories plummeted last week. Specifically, the Energy Information Administration said this morning that crude inventories fell by 12.6 million barrels in the week ended Nov. 25, compared to the consensus estimate for a decline of 4.4 million barrels. This marked a third consecutive week of falling inventories.
While the news sent oil futures to their highest close in over a week, they still finished the month down almost 7%. The volatility in the energy markets has made it harder for investors to find opportunities, but analysts believe these three names are some of the best oil stocks right now.
-
12 Tax Strategies Every Self-Employed Worker Needs in 2026Your Business Navigating the seas of self-employment can be rough. We've got answers to common questions so you can have smoother sailing.
-
7 Hybrid Adviser Services, ReviewedThese hybrid adviser services aim for a sweet spot that combines digital investing with a human touch.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have Today
United Parcel Service stock has been a massive long-term laggard.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
-
Small Caps Can Only Lead Stocks So High: Stock Market TodayThe main U.S. equity indexes were down for the week, but small-cap stocks look as healthy as they ever have.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Dow Adds 292 Points as Goldman, Nvidia Soar: Stock Market TodayTaiwan Semiconductor's strong earnings sparked a rally in tech stocks on Thursday, while Goldman Sachs' earnings boosted financials.
-
Stocks See First Back-to-Back Losses of 2026: Stock Market TodayRising geopolitical worries and a continued sell off in financial stocks kept pressure on the main indexes on Wednesday.
-
Visa Stamps the Dow's 398-Point Slide: Stock Market TodayIt's as clear as ever that President Donald Trump and his administration can't (or won't) keep their hands off financial markets.
-
The December CPI Report Is Out. Here's What It Means for the Fed's Next MoveThe December CPI report came in lighter than expected, but housing costs remain an overhang.
