Dow soars 932 points, Nasdaq 3% as Fed’s Powell signals ‘soft landing’

Federal Reserve Chairman Jerome Powell speaks after Fed hikes interest rates

U.S. stocks soared after the Federal Reserve raised interest rates by a half a point for the first time in two decades and as Chairman Jerome Powell signaled the economy can avoid a recession.

The Dow Jones Industrial Average jumped 2.8%, or 932 points, while the Nasdaq Composite and S&P 500 rose 3% apiece.

"I think we have a good chance to have a soft or softish landing or outcome, if you will, I'll give a couple of reasons for that. One is households and businesses are in very strong financial shape" Powell said.

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	44296.51	+426.16	+0.97%
SP500	S&P 500	5969.34	+20.63	+0.35%
I:COMP	NASDAQ COMPOSITE INDEX	19003.651134	+31.23	+0.16%

The move came as policymakers have faced mounting pressure to move more aggressively to cool demand and slow rising consumer prices, which hit a 40-year high in March.

Financials jumped as banks can benefit from rising interest rates.

Ticker	Security	Last	Change	Change %
JPM	JPMORGAN CHASE & CO.	248.55	+3.79	+1.55%
WFC	WELLS FARGO & CO.	75.96	+1.13	+1.51%
BAC	BANK OF AMERICA CORP.	46.99	+0.55	+1.17%
{}	NO DATA AVAILABLE	602.79	+6.74	+1.13%

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In earnings, Starbucks reported record quarterly sales of $7.6 billion, which matched Wall Street’s estimates. Adjusted earnings of 59 cents per share fell short of estimates.

Ticker	Security	Last	Change	Change %
SBUX	STARBUCKS CORP.	102.50	+2.44	+2.44%

Shares of Lyft Inc. plunged after the ride-share company said it would have to spend more to attract drivers and forecast operating earnings less than Wall Street estimates. Uber Technologies fell in sympathy even though it reported a solid quarter and delivered an upbeat forecast.

Ticker	Security	Last	Change	Change %
LYFT	LYFT INC.	16.79	+0.50	+3.07%
UBER	UBER TECHNOLOGIES INC.	71.51	+1.87	+2.69%

WHAT DO FEDERAL RESERVE INTEREST RATE HIKES MEAN FOR MAIN STREET?

CVS shares ticked higher after raising its full year outlook as prescription demand helped ease falling COVID-related services.

Ticker	Security	Last	Change	Change %
CVS	CVS HEALTH CORP.	58.01	+0.91	+1.59%

In the afternoon, we’ll hear from MetLife, Allstate and eBay.

Ticker	Security	Last	Change	Change %
MET	METLIFE INC.	86.59	+1.38	+1.62%
ALL	THE ALLSTATE CORP.	203.73	+0.29	+0.14%
EBAY	EBAY INC.	63.24	+1.83	+2.98%

In other economic news, ADP's National Employment report for April came in at 247,000, sharply below the estimated 395,000 and trailing March’s tally of 455,000.

The Commerce Department is out with the U.S. trade balance for March. The monthly deficit in goods and services rose to a record $108.9 billion, up sharply from the previous record of $89.2 billion amid huge demand for imported goods and rising prices tied to inflation.

Traders work on the floor of the New York Stock Exchange in New York City, Nov. 29, 2016. (REUTERS/Brendan McDermid / Reuters Photos)

JOB OPENINGS CLIMB TO FRESH HIGH IN MARCH AS RECORD NUMBER OF AMERICANS QUIT THEIR JOB

Oil prices climbed 5% Wednesday following a drawdown in U.S. crude and fuel stockpiles and concerns about slowing demand from China. West Texas Intermediate crude rose to $107.81 per barrel, while Brent, the global benchmark, ticked up to $110.14 per barrel.

Ticker	Security	Last	Change	Change %
USO	UNITED STATES OIL FUND - USD ACC	74.25	+1.05	+1.43%
BNO	UNITED STATES BRENT OIL FUND - USD ACC	29.82	+0.25	+0.85%

Bitcoin is trading around $39,000 per coin.

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FOX Business' Ken Martin and The Associated Press contributed to this report.