Dow ends day above 33,000 for first time

Market responds to Fed reassurances key rates to stay low through ’ 23.

Stocks closed higher Wednesday, reversing an early slide after the Federal Reserve reassured Wall Street that it expects to keep its key interest rate near zero through 2023. The Dow Jones Industrial Average closed above 33,000 for the first time.

The central bank’s renewed commitment to keeping rates at rock bottom lows comes even as its latest economic forecast calls for growth of 6.5% this year and for inflation above 2% for the first time in years. Wall Street has been anxious about the potential for higher inflation and has been looking for signs that the central bank shares investors’ concerns.

Fed Chair Jerome Powell’ s remarks during a news conference appeared to do the trick. Major stock indexes had been down for most of the day, led by another wave of selling in technology companies as bond yields rose, driving the closely watched 10- year Treasury yield to 1.64%, the highest level since February 2020. After Powell spoke, stocks gradually pivoted higher, and bond yields fell.

The S& P 500 rose 0.3% to 3,974.12, recovering from a 0.7% slide. The benchmark index has now notched an all- time high 14 times this year. The Dow gained 189.42 points, or 0.6%, to 33,015.37. The Nasdaq, which had been down 1.5%, rose 0.4%.

Banks, industrial stocks and companies that rely on consumer spending helped lift the market. Those gains outweighed a pullback in health care, utilities and other sectors. Smaller company stocks, the market’s standout gainers so far this year, also had good day.