Dow closes almost 200 points higher as investors weigh future interest rate hikes; European markets close higher after ECB rate hike; Stoxx 600 up 0.5% 
Stocks rose Thursday after moving between gains and losses as Wall Street weighed Federal Reserve Chair Jerome Powell’s comments on the central bank continuing to fight inflation. 
The Dow Jones Industrial Average jumped 193.24 points, or 0.61%, to close at 31,774.52. The S&P 500 rose 0.66% to 4,006.18, and the Nasdaq Composite advanced 0.60% to 11,862.13. 
Earlier, stocks slid during a Q&A session from Powell at the Cato Institute where he reiterated that the central bank will do what it takes to fight inflation. He also signaled that a pause in rate hikes or a pivot to cutting interest rates is not coming soon. 
Economists at Nomura just changed their forecast for the Federal Reserve’s rate hike, now anticipating a 0.75 percentage point increase instead of a 0.50 percentage point one. 
Goldman Sachs and Bank of America have the same estimate for September. It’s also what markets have currently priced in - traders see an 86% chance of a 0.75% rate hike in September according to the CME Group’s Fed watch tool. That’s up from a 77% chance one day ago. 
Rivian shares popped more than 6% after the electric-vehicle startup and Mercedes announced they were planning a joint venture to build electric commercial vans for both brands in Europe.

 
European markets closed higher Thursday, hours after the European Central Bank announced a 75 basis point interest rate rise. 
The pan-European Stoxx 600 ended the day up 0.5%, with banking and financial services stocks leading the gains, up 2.3% and 1.2%, respectively. Retail stocks led losses, closing down 1.5%. 
Source: CNBC, Investing.com