Dow jumps more than 300 points as investors shake off mounting fears of more Fed rate hikes

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The stock market soared higher Friday, with shares paced to record a three-week loss streak, as investors shrugged off recent comments from Federal Reserve Chair Jerome Powell about more central bank rate hikes in the near future.

Key facts

The Dow Jones Industrial Average rose 1.1% to over 300 points, while the S&P 500 gained 1.4% and the tech-heavy Nasdaq Composite 1.9%.

Stocks are looking to make up for three straight weeks of losses with more gains on Friday as the Dow is up 1.4% through Thursday, while the S&P 500 has gained more than 2%.

Markets have fluctuated in recent days amid growing expectations that the Federal Reserve will raise interest rates by 75 basis points at its upcoming policy meeting later this month, following similar hikes in June and July.

Powell said in a question-and-answer session with the Cato Institute on Thursday that the central bank remains “strongly committed” to curbing inflation and will continue to aggressively raise interest rates “until the job is done.”

Shares of electronic signature company DocuSign, meanwhile, were up nearly 10% after reporting stronger-than-expected quarterly results, while cloud security firm Zscaler also rose 17% on strong financial results.

Oil prices recovered slightly on Friday after a dip earlier this week amid fears that a global economic downturn could hurt energy demand: the US benchmark West Texas Intermediate rose 3% to trade at $86 a barrel, while the international benchmark Brent-market oil now trades at nearly $92 a barrel.

Crucial Quote:

Stocks will “continue to track according to the Fed and domestic inflation, and both are moving in the right direction,” said Adam Crisafulli, founder of Vital Knowledge. “It’s critical not to get caught up in the day-to-day noise when it comes to the Fed,” he describes, adding that while a Fed pivot is unlikely to get there anytime soon, the central bank could speed up its interest rate. may delay-walking campaign later this year.

What to pay attention to:

Scott Minard, Guggenheim Partners’ global chief of investment strategy, predicts that a major market sell-off is still just around the corner. “This is seasonally the worst time of the year,” he told CNBC on Thursday, adding that the bear market is still “intact” even though investors are “ignoring” the challenging macroeconomic environment. Minard predicts that the S&P 500 will fall 20% from current levels in mid-October.

Read further:

Stocks rise even after Powell reiterates that the Fed will continue to raise interest rates (Forbes)

Oil prices hit seven-month lows on fears of recession on demand (Forbes)

Dow falls close to 200 points as ‘gloomy’ investors brace for higher interest rates (Forbes)

The stock market summer rally is over and investors should prepare for a rough September (Forbes)