By Liz Moyer
Investing.com — U.S. stocks closed higher as tech stocks led the Dow in a late afternoon rally.
Federal Reserve Chairman Jerome Powell concluded his semiannual two-day testimony on Capitol Hill, updating lawmakers on the state of the economy and answering questions about inflation and central bank policy.
As of 4:14 p.m. ET, the was up 194 points or 0.6%, while the was up 0.9% and the was up 1.6%.
Stocks closed on a sour note on Wednesday after Powell told Senate lawmakers that a recession was possible but that the central bank was “strongly committed” to bringing inflation under control by raising interest rates. He also said the economy was strong enough to withstand multiple rate hikes.
UBS has joined Goldman Sachs and Citigroup in raising the odds of a recession sometime next year. The Swiss bank put the rating at 69%.
Shares of homebuilder KB Home (NYSE:) rose more than 8% after renewing its outlook for the year despite seeing the housing market moderate this year.
Funko Inc. (NASDAQ:) Shares rose 12% after JPMorgan upgraded to overweight. Analysts have called the toy industry a safe haven in today’s market.
Shares of Darden Restaurants Inc (NYSE:) rose 0.4% even after reporting earnings of $2.24 per share on revenue of $2.6 billion, both.
Shares of Occidental Petroleum Corporation (NYSE:) rose 0.6% after Warren Buffett’s conglomerate Berkshire Hathaway (NYSE:) said it bought more than $500 million in stock to boost its stake at 16.3%.
Oil was unable to hold onto its earlier gains. fell 1.9% to below $105 a barrel, while it fell 1.6% to below $110 a barrel. fell 0.6% to $1,826.