Stocks gained on Wednesday in an intraday turnaround as investors shook off a quarter-point rate hike from the Federal Reserve and instead focused on comments from Fed Chairman Jerome Powell that acknowledged falling inflation.
The Dow Jones Industrials survived heavy losses earlier in the day and forged higher 6.92 points by the close Wednesday at 34,092.96.
The S&P 500 hiked 42.61 points, or 1.1%, to 4,119.21.
The NASDAQ Composite surged 231.77 points, or 2%, to 11,816.32, boosted by gains in chipmakers following strong earnings from Advanced Micro Devices
The Fed's latest hike represented a slowing from its half-point increase in December, giving a nod to investors hoping the central bank would ease off its aggressive tightening campaign. They were further encouraged by Powell's comments.
Stock benchmarks also got a boost as fourth quarter corporate earnings largely continued to show resilient profits. Peloton shares surged 26.5% after the fitness equipment company said its net loss narrowed year over year. Advanced Micro Devices shares gained 12.6% after the semiconductor company reported a fourth-quarter earnings beat.
Prices for the 10-year Treasury regained strength, lowering yields to 3.42% from Tuesday's 3.50%. Treasury prices and yields move in opposite directions.
Oil prices dipped two dollars to $76.87 U.S. a barrel.
Gold prices jumped $22.40 to $1,967.70 U.S. an ounce.