The stock market has rallied since the beginning of the year, with the three major indexes gaining on the back of encouraging commentary on inflation by Fed Chair Jerome Powell. The Dow Jones Industrial Average gained 1.7% year-to-date, while the S&P 500 and the Nasdaq Composite rallied 6.3% and 12.6%, respectively.
Tech and growth stocks have gained this year on hopes that the Fed would stop raising rates earlier than expected. When questioned whether the Fed would stop rate increases before the previously guided median target range of 5% to 5.25%, Powell said, “Absolutely, it’s possible,” depending on inflation and labor market data over the next couple of months.
