NEW YORK – The Nasdaq powered to a fresh record on Tuesday (June 22) as Wall Street rallied for a second straight session on fading worries about shifting US monetary policy.
The tech-rich Nasdaq Composite Index climbed 0.8 per cent to 14,253.27, easily topping a record set earlier this month.
The Dow Jones Industrial Average gained 0.2 per cent to 33,945.58, while the broad-based S&P 500 advanced 0.5 per cent to 4,246.44.
The Dow last week suffered its worst week since October on worries about monetary policy after the Federal Reserve moved up its timeframe for lifting interest rates.
But this week’s rally shows the market realized it “maybe overreacted a little bit to the hawkishness last week,” said briefing.com analyst Patrick O’Hare.
“You had a strong rebound yesterday and you’ve seen a continuation of it today.”
Many analysts had characterised the Fed’s posture last week as more hawkish than expected.
But O’Hare noted that even under the current timeframe, the Fed’s targeting of 2023 for the first interest rate hike is still highly accommodative.
At a congressional hearing Tuesday, Fed chairmn Jerome Powell reiterated that higher inflation is a short-term issue.
Among individual companies, Sanderson Farms jumped 10.3 per cent following a Wall Street Journal report that the firm is considering a sale amid strong demand for chicken products.