Stocks surge on talk of slower rate hikes, pushing Dow into bull market

Nov. 30 (UPI) -- U.S. stocks surged Wednesday, with the Dow Jones Industrial Average entering a bull market after Federal Reserve Chairman Jerome Powell said the pace of interest rate hikes may slow in December.

The Dow climbed 734.24 points, or 2.18%, to close at 34,589.77. The S&P 500 gained 122.48 points, or 3.09%, to close at 4,080.11, and the Nasdaq Composite rose 484.22 points, or 4.41%, to 11,468.

"Investors are looking for that rock of certainty -- something to hang your hat on for greater predictability of where the Fed's going with interest rates. The messaging that the pace of rate increases can begin slowing as early as December was that rock," said Greg Bassuk, CEO of AXS Investments, according to CNBC.

The Federal Open Market Committee began to raise the benchmark federal funds rate from near zero in March to a target range of 3.75% to 4% in an effort to cool the economy and slow inflation.

November's increase was the fourth consecutive increase of 0.75 percentage point, and investors have been eager for signs that the Fed might deliver a smaller, half-point increase in December.

"The time for moderating the pace of rate increase may come as soon as the December meeting," Powell said during an appearance at the Brookings Institution.

He said the Fed has "more ground to cover" in restoring price stability, and he anticipates ongoing rate hikes in an effort to bring inflation down to 2%.

Wednesday's boost brought markets to a strong end for November, with the Dow up 5.7% for the month, the S&P 500 ahead 5.4% and the Nasdaq gaining 4.4%.

The Dow entered a bull market Wednesday after closing more than 20% above its 52-week low.

The 10-year Treasury yield fell to 3.7%.

Oil prices rose, with the benchmark West Texas Intermediate at about $81 per barrel.