Producers of metals and other raw materials rose sharply after the Federal Reserve indicated more rate hikes were unlikely.
Rate-sensitive sectors, including materials, were under pressure for much of the last two weeks following an up-tick in inflation data.
"The message was basically this: 'we need more time,'" said Quincy Krosby, chief global strategist at brokerage LPL Financial. "We need more time to make certain that disinflation has gained momentum."
The responses in Treasury and foreign-exchange markets suggested that Powell allayed concerns about another pivot in Fed policy.
Powell also threw bullish stock traders a bone by reducing the pace of the central bank's bond sales.
"The market had been expecting there'd be a slowdown in pace of quantitative tightening, but it was larger than the market had forecast," said Krosby.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-01-24 1737ET
