U.S. Stock Market Rebounds As Fed Hints At Higher Rate Hikes

Major US indices rose Tuesday (Wednesday, Mar. 23, 2022, in Manila) after ending a four-session run of gains on Monday, Carla Mozee reported for Business Insider. Investors appeared to take in stride Fed Chairman Powell's signal in the previous session to expect at least one rate hike of 50 basis points.

Photo Insert: Wall Street's key stock benchmarks finished higher after Monday's session snapped a run of losses.

Wall Street's key stock benchmarks finished higher after Monday's session snapped a run of losses. Those losses occurred after Powell told the National Association for Business Economics (NABE) that there is potential for a rate hike of 50 basis points as "inflation is much too high."

The tech-concentrated Nasdaq Composite popped up 2% during Tuesday's trade. Winners included Tesla and Moderna, with the biotech firm aiming to expand the use of its COVID-19 vaccine to other illnesses. The consumer discretionary and communication services group led gains on the S&P 500 Index.

The S&P 500 and the Nasdaq Composite on Monday broke four straight days of gains. Among Dow industrials on Tuesday, Nike climbed after the athletic apparel maker's fiscal third-quarter earnings and sales jumped above expectations. The average had a five-session winning streak going that ended Monday.

The S&P 500 notched 4,511.81, up 1.13%, while Dow Jones Industrial Average (DJIA) rose to 34,807.86, up 0.74% or 254.87 points and Nasdaq Composite tallied 14,108.82, up 1.95%.

With investors pricing in more rate hikes, a selloff in the bond market continued and pushed the 10-year Treasury yield to a 2019 high of 2.359%. The 10-year yield later pared its gain, rising eight basis points to 2.379%.

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