The stock market jumped on Wednesday despite oil prices skyrocketing to their highest level since 2011; as Federal Reserve Chairman Powell told Congress that the central bank plans to raise interest rates by a quarter-percentage-point.
Despite surging oil prices, stocks rebound.
The S&P 500 gained 2.1% and the tech-laden Nasdaq gained 1.8% on Wednesday, as the stock market rebounded.
Financials, energy and industrial stocks led the market higher even as oil prices continued to soar due to Russia's invasion of Ukraine.
The price of oil jumped to their highest level in more than three years on Wednesday.
Federal Reserve Chairman Powell said in testimony before Congress that the central bank plans to begin raising interest rates in two weeks.
The Fed chairman added that the central bank is keeping a close eye on the conflict in Ukraine and the sanctions against Russia.
As Russian and Ukrainian officials prepare for a second round of negotiations on Wednesday, Russia's military recently seized control of the southern city of Kherson, while the city of Kharkiv reported fresh missile strikes.
The founder of Vital Knowledge says investors are being whipsawed by a series of macro and micro cross-currents. Moscow's economic plight under harsh sanctions is completely untenable, and he expects some type of a Russia-Ukraine thaw.
Powell said that he will propose a 0.25 rate hike in March, but that he could raise rates more aggressively if inflation continues to rise. The Fed chairman confirmed that the central bank will start reducing its balance sheet in a predictable manner after the rate-hiking cycle begins.
Powell says rate hikes are coming in March despite uncertainty.
Oil prices Surge as Russia-Ukraine Conflict Continues to Roil Markets.
The price of oil has hit a seven-year high.
This expert predicts that the economic impact from Russia's invasion will be gradual.
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