Dow jumps over 400 points after Powell testimony

NEW YORK - US stocks rallied on Wednesday as investors eyed Federal Reserve Chairman Jerome Powell's testimony to Congress on the outlook for the economy and the central bank's monetary policy.

The Dow Jones Industrial Average jumped 424.51 points, or 1.35 percent, to 31,961.86. The S&P 500 increased 44.06 points, or 1.14 percent, to 3,925.43. The Nasdaq Composite Index rose 132.77 points, or 0.99 percent, to 13,597.97.

Nine of the 11 primary S&P 500 sectors finished in green, with energy up 3.65 percent, leading the gainers. Utilities and consumer staples, however, struggled.

US-listed Chinese companies traded mostly lower with seven of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.

Powell kept a dovish stance in his semi-annual testimony to Congress on Tuesday and Wednesday. He reiterated that US interest rates will remain low for some time and the central bank will keep buying bonds to support the US economy.

"The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," said the Fed chief.

Powell's remarks came as inflation fears have mounted in recent weeks on Wall Street. Tech mega-caps that fueled the market's first bounce from pandemic lows have seen intense selling lately amid inflation worries.