From Investor's Business Daily, 1:31 PM ET:
Stocks extended gains sharply after Fed Chairman Jerome Powell hinted at a slower pace of interest-rate hikes than expected.
The Dow Jones industrial average shot up 2% while the Nasdaq composite surged 2.1% and the S&P 500 added 1.7%. Indexes were already higher before Powell's comments made it across newswires and accelerated gains on the latest remarks from the Federal Reserve chairman.
In a speech in New York, Powell said interest rates are "just below" levels considered "neutral." Wall Street interpreted those three words as a more dovish turn on rate hikes.
"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell told the Economic Club of New York. In general, Powell saw the economy on strong footing and without major concerns about financial markets.
The yield on the 10-year Treasury note fell initially but was nearly unchanged in early afternoon at 3.05%.
Volume rose on the NYSE and Nasdaq compared with the same time on Tuesday. Winners led losers by a 3-1 ratio on the Nasdaq and by better than 11-to-3 on the NYSE.
Only a few stocks broke out despite the big index gains.
Amedisys (AMED) leapt past the 127.48 buy point of a cup-without-handle base in volume about 30% higher than normal. It's the second time Amedisys cleared that entry, after an attempt Nov. 16 was foiled.
Allegion (ALLE), the maker of security products for homes and businesses, jumped past the 90.79 buy point of a cup with handle. American Express (AXP) broke out of a cup with handle with a 110.48 buy point.
UnitedHealth Group (UNH) rose 4% to a new high in active trading. The nation's largest health insurance provider is rising from the latest in a series of pullbacks to the 50-day moving average. The managed care industry group was one of today's best, up 2.7%.
Software, Retail Among Leaders
Software, retail, mining and some other health care industry groups also led the market. All 11 S&P sectors were higher, although utilities and consumer staples lagged. Both are considered defensive assets and were out of favor as the market rallied broadly....MORE
