Wall Street finishes up, GameStop soars

Stocks on Wall Street ended sharply higher on Wednesday as a selloff in technology stocks eased and a rotation into cyclical shares, such as energy stocks, continued.

The Nasdaq index, which traded as much as 1.3% lower earlier in the session, regained its footing by early afternoon and closed higher. The Dow hit a record high in the session.

The major indexes staged a comeback after Federal Reserve Chair Jerome Powell's comments on his second day of testimony to congress soothed inflation worries.

Carin Pai is head of equity strategy at Fiduciary Trust International:

"This is confidence for markets. A confidence-booster in terms of the Fed's commitment to keeping rates low and to support the economy. I don't think the Fed will raise rates too quickly. They've committed to not doing anything to disrupt the potential for the economy to re-gain its footing."

Among the biggest movers on Wall Street: Gamestop. The video game retailer surged more than 100% before shares were halted. It announced this week its chief financial officer will resign.

The company was at the center of a stock-trading frenzy in late January which saw retail investors drive up its stock, hitting hedge funds who had been betting against the company.

Tesla meanwhile gained 6% after star investor Cathie Wood's Ark Invest fund bought more shares, to the tune of $171 million, in the wake of a sharp fall in the electric-car maker's stock.

Video Transcript

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- Wall Street ended sharply higher on Wednesday as a sell-off in technology stocks eased and a rotation into cyclicals shares, such as energy stocks continued. The NASDAQ index, which traded as much as 1.3% lower earlier in the session, regained its footing by early afternoon. By the close, the Dow hit a record high in the session. The S&P and the NASDAQ also finished with solid gains. The major indexes staged a comeback after Federal Reserve Chair Jerome Powell's comments on his second day of testimony to Congress soothed inflation worries. Carin Pai is head of equity strategy at Fiduciary Trust International.

CARIN PAI: This is a confidence for markets, a confidence booster in terms of the Fed's commitment to keeping rates low and to support the economy. I don't think that the Fed will raise rates too quickly. I think they've committed to not do anything to sort of disrupt the potential for the economy to regain its footing.

- Among the biggest movers on Wall Street, GameStop, the video game retailer surged more than 100% before shares were halted, it announced this week its chief financial officer will resign. The company was at the center of a stock trading frenzy in late January, which saw retail investors drive up its stock, hitting hedge funds who had been betting against the company. Tesla, meanwhile, gained 6% after star investor Cathie Wood's Ark Invest Fund bought more shares to the tune of $171 million in the wake of a sharp fall in the electric car marker's stock.