US stocks closed generally higher overnight after upbeat comments from Fed Chair Jerome Powell. In the nomination hearing before Senate Banking committee, he said that the current surge in Omicron infections will only have “short-lived” impacts. The economy is ready for some monetary stimulus withdrawal.
“Inflation is running very far above target. The economy no longer needs or wants the very accommodative policies we have had in place,” Powell said. And, “you need to focus on getting inflation under control because you’re not going to have maximum employment without price stability.” Though, he didn’t drop any hint on the timing of the first rate hike.
S&P 500 closed up 0.92% at 4713.07. SPX is so far still holding well inside medium term rising channel. 55 day EMA is also providing adequate support to maintain bullishness. Overall, it’s still on track to resume the long term up trend through 4818.62 high at a later stage, towards 5000 handle.
