NEW YORK — Stocks surged to record highs on Wednesday after the Federal Reserve signaled that its aggressive cycle of interest rate increases may be nearing an end, unleashing a broad rally across bonds, equities and commodities.
The S&P 500 climbed 2.3 percent to 5,812, its biggest one-day gain in more than a year, while the tech-heavy Nasdaq jumped 3.1 percent. The Dow Jones Industrial Average rose 610 points to close above 42,000 for the first time.
Fed Chair Jerome Powell, speaking at a news conference after the central bank's policy meeting, said officials were "substantially closer" to the end of the tightening cycle and acknowledged that inflation had eased "more meaningfully" than the committee expected three months ago.
Bond yields tumbled on the news. The 10-year Treasury yield fell 18 basis points to 3.87 percent, its lowest level since September. The dollar weakened against most major currencies.
Gold climbed 2 percent to $2,410 an ounce, a record, as traders bet that the Fed's next move would be a cut rather than another increase.
Daniel Ortega
Business reporter focused on markets, the Federal Reserve, and macroeconomics.
