US benchmark equity indexes demonstrated positive momentum ahead of Wednesday's closing as markets evaluated the recent comments from Federal Reserve Chair Jerome Powell. The Nasdaq Composite increased by 1.3% to 19,725.8, while the Dow Jones Industrial Average climbed 0.8% to 45,044.1. The S&P 500 advanced by 0.6% to 6,086.2.
Notably, the technology sector experienced the highest gains, whereas energy took the deepest hit. Powell indicated that the US economy appears more robust than perceived in September, during which the Federal Open Market Committee initiated a monetary policy easing, suggesting that policymakers might adopt a more cautious approach in further interest rate reductions.
"We can afford to be a little more cautious as we try to find neutral," Powell remarked. In a separate commentary, St. Louis Fed President Alberto Musalem noted expectations of a gradual decline in US inflation to the FOMC's long-term target of 2%. He stated that, over time, "additional easing of moderately restrictive policy toward neutral will be appropriate." The US two-year yield saw a decrease of 4.3 basis points, settling at 4.13%, while the 10-year rate declined by 3.7 basis points to 4.18%. Companies such as Synopsys, SentinelOne, Five Below, and American Eagle Outfitters are poised to report their latest quarterly financial results following the closing bell.
This update may provide further insights into recent market dynamics. Meanwhile, West Texas Intermediate crude oil prices fell by 1.5% to $68.86 per barrel..