The New York stock market started off higher, buoyed by remarks from Federal Reserve Chair Jerome Powell that dismissed inflation concerns.
As of 10:30 a.m. local time on the 20th at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose by 206.38 points (0.49%) to reach 42,171.07. The large-cap benchmark Standard and Poor's (S&P) 500 index increased by 26.32 points (0.46%) to 5,701.61, while the technology-focused Nasdaq composite index was up 108.11 points (0.61%) at 17,858.90.
In the early stages of trading, all three indexes fell, suggesting that investor sentiment had taken a hit overnight, but after about 30 minutes, they all shifted to an upward trend.
On the previous day, the Federal Reserve announced a decision to keep interest rates unchanged for the second consecutive time after concluding its Federal Open Market Committee (FOMC) March meeting. The U.S. benchmark interest rate will remain at the current level (4.25% to 4.50%) until the next FOMC meeting scheduled for early May. The Federal Reserve also hinted at the possibility of two rate cuts within the year.
Additionally, Powell noted that "the likelihood of a recession has been adjusted upward, but it is not high." He stated, "Inflation may partially rise due to tariffs, but prices that have increased because of the tariffs will soon return to normal levels," and added, "Long-term expected inflation is generally well anchored."
The U.S. Department of Commerce revealed that last year's fourth-quarter current account deficit decreased by $6.3 billion (2.0%) compared to the previous quarter, totaling $303.9 billion, falling short of the market expectation of $325.5 billion.