Stock market jumps 600 points on fed announcement

NEW YORK (AP) — Stocks surged on Wall Street, powering a 600-point gain in the Dow Jones Industrial Average, after the head of the Federal Reserve hinted at slower interest rate increases.

The market snapped higher shortly after noon Wednesday after Federal Reserve Chairman Jerome Powell suggested the central bank might consider a pause in its interest rate hikes next year.

The Fed needs to raise interest rates to stave off inflation but investors fear they may also slow down economic growth.

Technology stocks posted some of the biggest gains. Salesforce.com surged 10.3 percent.

The Dow climbed 617 points, or 2.5 percent, to 25,366, its biggest gain in eight months.

The S&P 500 index rose 61 points, or 2.3 percent, to 2,743.

The Nasdaq composite climbed 208 points, or 2.9 percent, to 7,291.

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