Stocks jump as Fed Chair Powell signals slowing interest rates

Comments from Fed Chair Jay Powell about slowing interest rate hikes pushed markets higher in the final hour of trading on Wednesday.

Video Transcript

SEANA SMITH: Let's get you up to speed on today's market action. And once again, we are looking at a rally. We're looking at the Dow now up just over 400 points. The gains following some comments that we will hear a little bit more about in just a minute from Fed Chair Jay Powell about the pace of the rate hikes in the future. It looks like the Fed will be slowing it down just a bit. That is fueling today's gains, with the Dow up 415 points and NASDAQ up 334 points. Right now, S&P back above 4,000. You're looking at a gain of nearly 2%.

Taking a look at the Russell 2000, the small cap index, that's up just over 1 and 1/2% today. And taking a look at the yields, we are seeing the 10-year yield pull back just a bit, off just about five basis points at 370. Let's dig into some of the big movers that we are seeing. A lot of this related to comments from Powell and because of that, we are seeing a lot of those larger cap tech names leading today's rally. A lot of those names very sensitive to the rate hiking cycle.

So you're looking at Apple, Amazon, Microsoft, Google leading the way this afternoon. Tesla up just around 4 and 1/2%. Digging inside the Dow, again, a lot of green on your screen. Salesforce up just around 3 and 1/2%. We'll be hearing from Salesforce. Their earnings will be released shortly after the close this afternoon. And this sector action, all 11 of the S&P sectors moving to the upside. The leadership, no surprise there, coming from technology and communication services. Dave.

DAVE BRIGGS: I don't get it. Remember "Big"? Remember the movie, "Big"?

SEANA SMITH: I remember the movie, "Big." Of course, yep.

DAVE BRIGGS: I don't get it because they were turning a building into a Transformer. Nothing Jerome Powell said today surprised me one bit. And it shouldn't have surprised the markets either because we were told and shown that this was all baked in at 50, a 25, and then we'll see. I understand the NASDAQ is the most sensitive to interest rate hikes. What do you make of this?

SEANA SMITH: I think it's just the markets, once again, looking for any sort of piece of good news, right? And you and I have been talking about that time and time again. Even if the Fed reiterates exactly what we were initially thinking, it's going to send the markets higher. We're seeing that reflected in today's action. And again, the leadership that we're seeing points to that with technology, communication services. Some of those names that were beaten down so severely over the last several weeks leading the gains today.

DAVE BRIGGS: Yeah, the market just--

SEANA SMITH: We'll see whether or not it holds, though. That's the question.

DAVE BRIGGS: I love optimism, man.

SEANA SMITH: Me, too.