According to final results at the close, the Dow Jones index rose 0.74% to 34,807.46 points.

The Nasdaq, with strong technological coloring, climbed 1.95% to 14,108.82 points.

The broader S&P 500 index gained 1.13% to 4,511.61 points.

"It looks like we've hit rock bottom and the worst may be behind us," hoped Maris Ogg of Tower Bridge Advisors, saying the market had now "priced in" the Fed's more aggressive stance on - with respect to inflation.

Markets were indeed grappling with comments made by US central bank President Jerome Powell on Monday that sounded more hawkish on rising prices and monetary policy.

In a speech at a conference in Washington, the head of the Federal Reserve (Fed) appeared even more determined to raise key rates quickly to counter inflation.

"Inflation is much too high", launched the leader and the Fed "will take the necessary measures for a return to price stability".

He also left the door open for a half basis point (0.50 point) rate hike at one of the upcoming Federal Reserve Monetary Committee meetings.

“Goldman Sachs expects the Fed to raise its fed funds rate by 50 basis points at the May and June meetings – a view that is increasingly being priced in by markets,” Patrick O' said. Hare from Briefing.com.

But for Maris Ogg, given the uncertainties on the economy caused by the war in Ukraine, the Fed "could wait until after the American parliamentary elections" in November "before being more aggressive" in its rate hikes.

"Despite its stern tone, the Fed may let the market act for it," added the analyst, pointing to the sharp rise in bond market rates following the tough speech from the Fed boss.

Yields on both short-term and mid-term Treasuries rose rapidly on Monday and the trend continued on Tuesday.

The rate on the 10-year loan settled above 2.37%, a peak since May 2019.

On the stock market, the American sportswear and footwear giant Nike was hailed (+2.23% to 133.09 dollars) after announcing the day before, after the closing, results exceeding analysts' expectations in the 3rd quarter.

These figures, which appeared to bode well for the consumer goods sector three weeks before the corporate earnings season, are largely based on the increase in sales in the North American market but also on a jump in online sales.

The Boeing share price regained height (+2.76% to 191.04 dollars), after the fall the day before (-3.59%) following the fatal accident of a Boeing 737-800 in southern China with 132 people on board.

Apart from energy (-0.66%) which lost momentum in the wake of a drop in crude prices, all S&P sectors ended in positive territory, with consumer staples in the lead (+ 2.45%) as well as banks (+1.60%), which benefited from the rise in interest rates.

JPMorgan climbed 2.13%, Wells Fargo 4.40% and Bank of America 3.13%.

The securities of the Chinese e-commerce giant Alibaba, listed in New York, showed an access of vigor (+ 11% to 114.99 dollars) after the group announced to increase its share buyback plan to 25 billion dollars against 15 billion dollars.

© 2022 AFP