FOMC Chairman Powell says policy rate is near their estimate of neutral. 10 of 11 major S&P 500 sectors close the day in the positive territory. Improved sentiment boosts technology. After starting the day modestly higher, major equity indexes in the U.S. received a boost from FOMC Chairman Powell’s remarks on the monetary policy outlook and closed the day sharply higher. Speaking at the Economic Club of New York luncheon on Wednesday, Powell said that the policy rate was ‘just below’ their estimate of neutral and triggered a rally in stock markets, which were worried about the potential negative impact of rate hikes on the economic growth. Additionally, the second estimate of the GDP growth published by the U.S. Bureau of Economic Analysis stayed unchanged at 3.5%. The improved sentiment helped the risk-sensitive S&P 500 Technology Index close the day 3.44% higher. Commenting on the market reaction, “Powell gave the market, and presumably President Trump, exactly what he wanted, which was an admission that the previously proposed path of future rate hikes was probably too aggressive,” Oliver Pursche, chief market strategist at Bruderman Asset Management in New York, told Reuters. Despite another sharp fall in crude oil prices, the S&P 500 Energy Index rose 1.75% while the Consumer Discretionary added 3.23% to become the best performing sector behind technology. The S&P 500 Utilities Index, which is seen as a defensive sector, was the only major sector that finished the day in the negative territory with a 0.12% loss. The Dow Jones Industrial Average gained 617.64 points, or 2.5%, to 25,366.37, the S&P 500 added 61.61 points, or 2.30%, to 2,743.78 and the Nasdaq Composite rose 208.89 points, or 2.95%, to 7,291.59. Technical outlook by FXStreet Chief Analyst Valeria Bednarik The index is at its highest since November 19, not yet out of the woods, according to the daily chart, in where it finished above the 20 and 200 DMA but still below the 100 DMA, this last over 200 points above the current level and directionless. Technical indicators in the mentioned chart have turned sharply higher, but only the RSI entered positive ground, now at 54. In the 4 hours chart, however, the upside seems a bit more constructive, as the index is above all of its moving averages, with the 20 SMA turning north far below the current level and the 100 and 200 SMA converging around 25,190, while technical indicators barely lost upward strength within extreme overbought levels. Some relevant intraday highs come around 25,500 the level to surpass for the index to re-enter bullish ground. Support levels: 25,309 – 25,244 – 25,190. Resistance levels: 25,372 – 25,427 – 25,480. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin Price Analysis: BTC/USD halted at stumbling block, its fly or sink here FX Street 4 years FOMC Chairman Powell says policy rate is near their estimate of neutral. 10 of 11 major S&P 500 sectors close the day in the positive territory. Improved sentiment boosts technology. After starting the day modestly higher, major equity indexes in the U.S. received a boost from FOMC Chairman Powell's remarks on the monetary policy outlook and closed the day sharply higher. Speaking at the Economic Club of New York luncheon on Wednesday, Powell said that the policy rate was 'just below' their estimate of neutral and triggered a rally in stock markets, which were worried about the potential negative… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.