Yellen's reassurance that interest rates will remain low calms market
NEW YORK — Soothing words from Federal Reserve Chair Janet Yellen helped pull the stock market out of a morning slump on Wednesday, but Internet companies and Whole Foods Market plunged, taking the Nasdaq down.
Traders dropped NetApp, salesforce.com and other tech companies for a second day, sending their stocks down 2 percent or more. Whole Foods plunged 19 percent after cutting its profit forecast.
Yellen told the Joint Economic Committee of Congress that a tough job market and weak inflation meant that the Fed will likely keep borrowing rates low for a “considerable time.” Because of that, she said, the economy still needed the Fed's help.
Yellen's comments appeared to ease concerns that the Fed was going to remove more support. The stock market had wandered lower in morning trading, then turned from a loss to a gain before the lunch hour.
“I think the market breathed a sigh of relief that she wasn't going to unveil something new,” said Jeff Kleintop, chief market strategist at LPL Financial.
The Standard & Poor's 500 index gained 10.49 points, or 0.6 percent, to close at 1,878.21.
The Dow Jones industrial average climbed 117.52 points, or 0.7 percent, to 16,518.54. The Nasdaq fell 13.09 points, or 0.3 percent, to 4,067.67.
The S&P 500 index is within striking distance of its closing high of 1,890 reached on April 2.
“Whenever you're near all-time highs, you're going to see skittishness,” said JJ Kinahan, chief strategist at TD Ameritrade. “In this market, the slightest news can change everything.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Operating loss widens at Highmark parent
- Summer blend to boost gasoline prices over next month
- Pennsylvania grid operator might delay power auction for new rules
- Anchor Hocking parent EveryWare files for Chapter 11
- Consol Energy files for IPO of coal spin-off
- Conventional gas, oil drillers seek rules differing from shale industry in Pennsylvania
- Pa. Gas & Electric agrees to $6.8 million settlement of polar vortex claims
- Stocks of Pittsburgh-area companies set record in March
- Pittsburgh region’s unemployment rate stays steady
- GNC will expand its testing of supplements in settlement with NY
- U.S. Steel considers temporary shutdown of Minn. plant