The jump in stocks, the biggest for any Fed day since July, follows a bruising four-week stretch in which the S&P 500 slid into a correction. Treasuries saw an abrupt reversal, with two-year yields sinking below 4%.
Stocks climbed and bond yields fell as Jerome Powell calmed tariff-obsessed investors, signalling the Federal Reserve saw no need for drastic action in the face of Donald Trump’s trade war.
After central bankers held monetary policy steady, as expected, Powell was measured in his assessment of how the president’s actions might shape the economy, citing the potential for the impact of tariffs on inflation to be “transitory.”
