U.S. stocks rose dramatically in Wednesday morning trading after a testimony from U.S. Federal Reserve Chairman Ben Bernanke confirmed that interest rates would be maintained near zero. The statement, made before Congress assuaged anxiety among investors and sent financials up 77 points or 0.8 percent to trade at 10360.
Bernanke said the interest rate would stay at the discounted rates for at least the next several months, pushing Bank of America up 2 percent and American Express 1.9 percent. J.P Morgan Chase was also up 1.9 percent.
The Nasdaq Composite also benefited from the news, gaining 1 percent while the Standard & Poor's 500 rose 0.8%. Technology and financials were big winners in morning trading.
Bernanke’s goal for the lower interest rate is to encourage banks to profit from yield curves, or the divide between short and long-term interest rates on bonds.
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