Stock Market Today: Powell Speech Sparks Massive Stock Rally
The Fed chair suggested smaller rate hikes are likely going forward, but cautioned that inflation is still too high.


There was plenty for investors to focus on Wednesday, including a weaker-than-expected November ADP jobs report, a stubbornly high level of job openings and an upwardly revised reading on second-quarter gross domestic product (GDP). However, the main event was a mid-afternoon speech from Federal Reserve Chair Jerome Powell – and stocks reacted in a big way to what the head central banker had to say.
During a speech at the Brookings Institution today, Powell said "the time for moderating the pace of rate increases may come as soon as the December meeting." However, he balanced this dovish tone by adding that "the path ahead for inflation remains highly uncertain," and that "history cautions strongly against prematurely loosening policy."
"Although much of Chair Powell's comments were benign and predictable, investors could be spooked with the Chair's admission that 'the path ahead for inflation remains highly uncertain,'" says Jeffrey Roach, chief economist for LPL Financial. "Overall, this speech will likely be bullish for the markets in the near term."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And that was certainly the case today, with stocks moving notably higher in late-afternoon trading. The tech-heavy Nasdaq Composite, whose components are most sensitive to interest rates, surged 4.4% to 11,468, the broader S&P 500 Index added 3.1% to 4,080, and the blue-chip Dow Jones Industrial Average rose 2.2% to 34,589. All three indexes also closed higher for November, marking their second straight month of gains.
Wall Street's Favorite Oil Stocks
Stocks weren't the only corner of the market seeing outsized gains today. U.S. crude futures jumped 3% to $80.55 per barrel after data showed domestic crude inventories plummeted last week. Specifically, the Energy Information Administration said this morning that crude inventories fell by 12.6 million barrels in the week ended Nov. 25, compared to the consensus estimate for a decline of 4.4 million barrels. This marked a third consecutive week of falling inventories.
While the news sent oil futures to their highest close in over a week, they still finished the month down almost 7%. The volatility in the energy markets has made it harder for investors to find opportunities, but analysts believe these three names are some of the best oil stocks right now.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Ask the Editor: Four Reader Tax Questions
Ask the Editor In our new Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions related to filing of tax returns and paying taxes.
By Joy Taylor Published
-
These Eight States Have the Most Expensive Home Insurance in 2025
If you live in one of these eight states, you’re probably paying $1,000 or more above the national average for home insurance.
By Rachael Green Published
-
Stock Market Today: It's Going to Stay Choppy for Stocks
Auto-focus can show us a lot about uncertainty on the ground and in the stock market.
By David Dittman Published
-
Stock Market Today: Auto Tariffs Send Stocks Lower
The main indexes snapped their win streaks after the White House confirmed President Trump will talk about auto tariffs after the close.
By Karee Venema Published
-
Stock Market Today: Stocks Seesaw After Big Market Rally
The latest consumer confidence data showed sentiment remains low.
By Karee Venema Published
-
Stock Market Today: Markets Celebrate Trump's Tariff Détente
Consumer discretionary stocks led 10 of the 11 S&P 500 sector groups well into the green.
By David Dittman Published
-
Stock Market Today: Stocks Swing Higher After Early Slump
Negative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
By Karee Venema Published
-
Stock Market Today: Stocks Struggle After Big Fed Gains
An unexpected rise in existing home sales couldn't save stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
By David Dittman Published
-
Stock Market Today: Stocks Skid Into Another Risk-Off Turn
The promise of the AI revolution can't overcome flickering hopes for a "Fed put."
By David Dittman Published