The Dow Jones Industrial Average rose 100 points, or 0.3%. The S&P 500 rose 0.4% and the Nasdaq Composite rose 0.1%.
Previously, the socks slipped during a question-and-answer session by Powell at the Cato Institute, where he reiterated that the central bank will do whatever it takes to fight inflation. He also signaled that a pause in rate hikes or a pivot to rate cuts is not coming anytime soon.
“History strongly warns against easing policies prematurely,” he said. “I can assure you that my colleagues and I are deeply committed to this project and we will continue until the job is done.”
Earlier in the morning, the European Central Bank raised interest rates by 0.75 percentage point, increasing its deposit from zero to 0.75%, in a largely expected move to lower inflation.
Later in the morning, however, stocks made up for earlier losses in an effort to continue a solid rally. On Wednesday, the leading averages recorded their best day since August 10, with the Nasdaq breaking a seven-day losing streak.