NEW YORK: US stocks rose in early trading Monday, as investors continued to digest a speech last week by Federal Reserve Chair Jerome Powell laying out his vision for monetary policy.
Powell said Friday that the Fed is prepared to raise interest rates higher – and hold them there – to bring down above-target inflation, but will proceed “carefully” going forward.
Wall St inches higher in choppy trade as traders analyze Powell’s speech
Around 15 minutes into trading, the Dow Jones Industrial Average was up 0.9 percent at 34,649.03.
The broad-based S&P 500 rose 0.7 percent to 4,436.27, while the tech-rich Nasdaq Composite Index advanced 0.8 percent to 13,693.89.
“Fed Chairman Jerome Powell’s speech last Friday had something for both hawks and doves, but market reaction continues to look positive early Monday,” economists from Charles Schwab wrote in a note.
“Powell’s comments seemed to ease investor concern that further rate hikes may be coming,” they added.
Among individual firms, shares in the industrial conglomerate 3M rose more than six percent in early trading.
This came on the back of a report in the Wall Street Journal that it is nearing agreement on a $5.5 billion settlement deal over claims of defective earplugs for the military.
Investors are also looking ahead to some important data releases later this week, with updated figures for second quarter economic growth and July data for the Fed’s favored inflation gauge both expected.
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