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Dow Logs 3rd-Straight Win Despite Interest Rate Update

Fed Chair Jerome Powell reiterated the central bank's hawkish inflation-battling measures

Deputy Editor
May 17, 2022 at 4:29 PM
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Wall Street shook off inflation concerns on Tuesday, extending this afternoon's gains after investors bought stocks at a bargain on the heels of the recent selloff. Earlier today, Federal Reserve Chairman Jerome Powell gave his highly anticipated comments regarding inflation. Powell reiterated the Fed's hawkish stance, indicating similar rate hikes to those seen recently will come in the near future, should economic conditions fail to improve. The Dow added more than 430 points to claim its third-straight win, while the S&P 500 and tech-heavy Nasdaq also logged substantial gains. 

Continue reading for more on today's market, including:

  • This agriculture name could yield big returns.
  • Activision Blizzard stock could move toward former highs.
  • Plus, video game stock nabs analyst notes; blue chip hikes full-year forecasts; and Warren Buffet's latest stake.

The Dow Jones Average (DJI - 32,654.59) popped 431.2 points, or 1.3% today. Boeing (BA) led the long list of Dow winners, gaining 6.5% today. Just six components turned in a loss, with Walmart (WMT) performing the worst after losing 11.4%.

The S&P 500 Index (SPX - 4,088.85) added 80.8 points, or 2% for the day, while the Nasdaq Composite (IXIC - 11,984.52) gained 321.7 points, or 2.8% for the session. 

Lastly, the Cboe Market Volatility Index (VIX - 26.10) lost 1.4 point, or 5%.

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5 Things to Know Today

  1. Pfizer and BioNTech's Covid-19 vaccine was approved for children aged 5 to 11 by the U.S. Food and Drug Administration. (Reuters)
  2. While his buyout attempt is still on pause, Tesla CEO Elon Musk reached out to the U.S. Securities and Exchange Commission (SEC) to help confirm Twitter's user numbers. (CNBC)
  3. Video game stock nabs post-earnings analyst notes.
  4. Why this blue-chip retailer hiked its full-year forecasts.
  5. Major bank that just became Warren Buffet's latest investment.

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Gold Continues to Recover from 3-Month Low

Oil prices fell on Tuesday, as the U.S. signaled easing sanctions on Venezuela, which could potentially allow Chevron (CVX) to negotiate its license with state-owned oil company PDVSA. For today's session, June-dated crude erased $1.80, or 1.6%, to settle at $112.40 per barrel

Gold prices, meanwhile, edged higher for a second-straight session, as the U.S. dollar continued to ease. Continuing to bounce from a three-month low, June-dated gold today added a modest $5.90, or 0.3%, to settle at at $1,818.90 an ounce.

 

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