The Dow Jones Industrial Average jumped 2.8%, or 932 points, while the Nasdaq Composite and S&P 500 rose 3% apiece.
"I think we have a good chance to have a soft or softish landing or outcome, if you will, I'll give a couple of reasons for that. One is households and businesses are in very strong financial shape" Powell said.
|I:DJI||DOW JONES AVERAGES||32637.19||+516.91||+1.61%|
|I:COMP||NASDAQ COMPOSITE INDEX||11740.650441||+305.91||+2.68%|
The move came as policymakers have faced mounting pressure to move more aggressively to cool demand and slow rising consumer prices, which hit a 40-year high in March.
Financials jumped as banks can benefit from rising interest rates.
|JPM||JPMORGAN CHASE & CO.||129.44||+2.20||+1.73%|
|WFC||WELLS FARGO & CO.||45.59||+1.30||+2.94%|
|BAC||BANK OF AMERICA CORP.||36.70||+0.69||+1.92%|
In earnings, Starbucks reported record quarterly sales of $7.6 billion, which matched Wall Street’s estimates. Adjusted earnings of 59 cents per share fell short of estimates.
Shares of Lyft Inc. plunged after the ride-share company said it would have to spend more to attract drivers and forecast operating earnings less than Wall Street estimates. Uber Technologies fell in sympathy even though it reported a solid quarter and delivered an upbeat forecast.
|UBER||UBER TECHNOLOGIES INC.||23.10||+1.06||+4.81%|
CVS shares ticked higher after raising its full year outlook as prescription demand helped ease falling COVID-related services.
|CVS||CVS HEALTH CORP.||97.76||+0.48||+0.49%|
In the afternoon, we’ll hear from MetLife, Allstate and eBay.
|ALL||THE ALLSTATE CORP.||133.72||+2.79||+2.13%|
In other economic news, ADP's National Employment report for April came in at 247,000, sharply below the estimated 395,000 and trailing March’s tally of 455,000.
The Commerce Department is out with the U.S. trade balance for March. The monthly deficit in goods and services rose to a record $108.9 billion, up sharply from the previous record of $89.2 billion amid huge demand for imported goods and rising prices tied to inflation.
Oil prices climbed 5% Wednesday following a drawdown in U.S. crude and fuel stockpiles and concerns about slowing demand from China. West Texas Intermediate crude rose to $107.81 per barrel, while Brent, the global benchmark, ticked up to $110.14 per barrel.
|USO||UNITED STATES OIL FUND L.P.||84.59||+2.11||+2.56%|
|BNO||UNITED STS BRENT OIL FD LP UNIT||33.32||+0.73||+2.24%|
Bitcoin is trading around $39,000 per coin.
FOX Business' Ken Martin and The Associated Press contributed to this report.