The three major indices of the New York stock market started lower after opening but successfully rebounded during the trading session. It is believed that the stock market was influenced by the optimistic assessment of the U.S. economy expressed by Jerome Powell, the chair of the Federal Reserve.
On the 7th (local time), the Dow Jones Industrial Average closed up 222.64 points (0.52%) at 42,801.72. The Standard & Poor’s 500 index rose by 31.68 points (0.55%) to close at 5,770.20, while the Nasdaq Composite index finished the session up 126.97 points (0.70%) at 18,196.22.
On this day, the New York stock market took Powell's remarks as a basis for its rebound. In a speech at a monetary policy forum held in New York, Powell noted, “While the level of uncertainty has increased, the U.S. economy is still in a good position.” He also addressed concerns regarding inflation in the U.S., stating, “Most long-term inflation expectation indicators are stable and in line with our 2% price target.”
Recently, the New York stock market has been adjusted amid concerns that U.S. economic growth will slow down. Powell's assessment of U.S. economic growth is interpreted as having stimulated investors' appetite for bargain buying.
However, experts emphasized that investors should pay attention as the volatility of the stock market has increased due to President Donald Trump’s high-intensity tariff policies. Glen Smith, Chief Investment Officer at GDS Asset Management, said, “The market does not like uncertainty,” adding that “investors must prepare for continued volatility until uncertainty is resolved.”