Stocks bounce as investors raise rate hike expectations after Powell’s comments; European stocks close higher as banks rise on rate hike prospects 
U.S. stocks rebounded Tuesday as traders digested Federal Reserve Chair Jerome Powell’s latest rate hike comments. 
The Dow Jones Industrial Average rose 254.47 points, or 0.7% to 34,807.46. The S&P 500 added 1.1% to close at 4,511.61. The Nasdaq Composite rallied nearly 2% to finish at 14,108.82. 
Goldman Sachs on Monday upped its forecast to 50-basis-point hikes at the May and June Fed meetings. UBS chief U.S. economist Jonathan Pingle in a note Monday said, “We think odds of a 50 bp rate hike are rising.” 
The benchmark 10-year U.S. Treasury yield on Tuesday hit 2.392% at the highs of the session, its highest level since May 2019. 
Bank stocks rose Tuesday along with interest rates. JPMorgan gained 2.1%, and Bank of America rose 3.1%. 
Technology stocks, which struggled Monday after Powell’s comments, rebounded Tuesday. Big Tech names Alphabet, Meta and Amazon all gained more than 2%, providing support to the indexes. 
Nike shares moved up 2.2% after the retailer reported a beat on the top and bottom lines for its fiscal third quarter, buoyed by strong demand in North America. 

The pan-European Stoxx 600 closed up 0.9%, with banks adding 2.5% to lead the gains as most sectors and major bourses finished in positive territory. 
In terms of individual share price movement, German construction software company Nemetschek jumped 10% to lead the European blue chip index after posting strong full-year earnings and promising forward guidance. 
The prospect of more aggressive interest rate rises lifted shares of European banks on Tuesday, with Deutsche Bank, Bankinter and Banco de Sabadell leading the way. 
Source: CNBC, Investing.com