Markets Bounce Back as Fed Eases Financial Concerns

The Dow and S&P 500 turned positive following Federal Reserve Chair Jerome Powell's announcement regarding the potential end of the central bank's balance sheet runoff, alleviating investors' worries about tight financial conditions. Earlier, Nasdaq showed a slight drop despite gains in Dow and S&P 500.

The markets witnessed a positive turn on Tuesday as Federal Reserve Chair Jerome Powell hinted that the balance sheet runoff might end soon, bringing relief to investors concerned about restrictive financial conditions.

As of 12:27 p.m. ET, the Dow Jones Industrial Average had climbed by 216.82 points or 0.47% to stand at 46,284.03. Meanwhile, the S&P 500 managed a modest gain of 3.08 points, or 0.05%, elevating it to 6,657.80.

However, the Nasdaq Composite index experienced a minor decline, losing 78.01 points or 0.34%, resulting in a new level of 22,617.72 amidst the mixed market reactions.

(With inputs from agencies.)