U.S. stocks edged higher Wednesday, pointing to a rebound in the major indexes after concerns about inflation and a rise in interest rates eased.
The S&P 500 ticked up 0.4%. The Nasdaq Composite Index edged up 0.8%, suggesting that technology shares may recover some ground a day after the index declined almost 1.9%. The Dow Jones Industrial Average added 0.1%.
Stocks resumed their upward trajectory Wednesday after Treasury Secretary Janet Yellen walked back earlier comments that interest rates might need to rise to keep the economy from overheating. She clarified after markets closed that she was neither predicting nor recommending that the Federal Reserve raise rates. Inflation isn’t likely to be a problem, and the Fed can handle it if it does become an issue, she said at The Wall Street Journal’s CEO Council Summit.
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“Today is a bit of a relief rally,” said Edward Park, chief investment officer at Brooks Macdonald. “Markets are grinding higher and they are grinding higher on a relative basis because equities remain the most attractive.”
Strong earnings growth and signs that the economy is rebounding quickly are helping boost sentiment, Mr. Park said. “But there is this growing question of how long will monetary policy remain accommodative,” he added.
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