After The Bell: Stocks Rise As Concerns About Interest-Rate Hikes Subside

Andy Giersher
November 28, 2018 - 6:35 pm

CHICAGO (WBBM NEWSRADIO) -- Stocks closed higher Wednesday after Federal Reserve Chair Jerome Powell said interest rates are near neutral, a major shift from remarks made just two months ago.

All three of the major indices had a banner session, with the Dow posting its biggest single-day jump since March.

The S&P 500 gained 61, the NASDAQ added 208 and the Dow Jones industrial average surged over 617 points, settling to 25,366.

"There was concern that the Fed was going to put interest rate increases on autopilot and potentially overshoot things and really become a major negative in terms of economic growth," says Chuck Carlson, CEO of Horizon Investment Services.

Now, he says, the implication is rates won’t rise as aggressively.

“That gave some pause for investors who were worrying about rising rates,” Carlson said.

He also noted the time tested Dow Theory is still bullish and investing in stocks should make investors money in 2019.