U.S. stock indexes soared about 3% yesterday, the best daily gain since 2020, The Wall Street Journal reported.

The Dow Jones Industrial Average rose 932.27 points (2.81%) to 34061.06 points. Leading the rise were shares of Honeywell International Inc. up 4.5%, Caterpillar Inc. and 3M Co. – up 4.2%.

The Standard & Poor’s 500 jumped 124.69 points (2.99%) to 4,300.17 points for the day. At the same time, all 11 industry sub-indices showed an increase. The Nasdaq Composite Index soared 401.1 points (3.19%) to 12964.86 points.

Rising oil prices caused the securities of oil industry representatives, including Exxon Mobil and Chevron Corp. to rise in price by 4% and 3.1%, respectively.

The value of Advanced Micro Devices jumped 9.1%. The microchip maker posted quarterly revenue above $5 billion for the first time in January-March, with adjusted earnings beating expectations.

Starbucks Corp. shares, owner of the world’s largest coffee chain, soared 9.8% on Wednesday despite the underwhelming results. In the 2nd quarter of fiscal 2022, which ended April 3, the company posted adjusted earnings that were worse than market expectations and revenue in line with forecasts.

Airbnb Inc. significantly reduced its net loss in Q1 and increased revenue by 70% year-on-year amid growth in the number of bookings. The company’s shares rose by 7.7%.

Moderna Inc. posted net income and revenue better than analysts’ expectations amid strong sales of COVID-19 vaccine. The capitalization of the biotechnology company grew by 5.8%.

Meanwhile, the share price of Lyft Inc. collapsed by almost 30%. The cab ordering service cut its net loss in Q1 and increased revenue, but the company’s outlook for the current period was worse than analysts’ expectations.

The Federal Reserve yesterday raised the interest rate by 50 basis points, now its range is 0.75-1% per annum. In March, the Fed raised the rate by 25 bps. The last time the U.S. Central Bank increased the rate at the end of two consecutive meetings in 2006, and the rise of 50 bps at once has not been since 2000.

Fed Chairman Jerome Powell, during a press conference after the meeting, expressed confidence that the U.S. economy is very strong and will be able to withstand an increase in interest rates. He said an additional 50 basis point hike in borrowing costs would be considered at the next few meetings of the Fed’s leadership.

Meanwhile, he said, an increase of 75 bps immediately is not actively being discussed. This came as a surprise to the market. Based on the quotes of futures on the size of the prime rate, the probability of such a step at the next meeting in June was estimated at about 95%.

Powell also noted that the Fed has tools to control inflation.

In addition, the leaders of the U.S. central bank announced their intention to begin reducing the portfolio of government bonds, debt obligations of government agencies and mortgage-backed debt securities on June 1. This is due to the fact that the assets on the Fed’s balance sheet have reached an astronomical amount of $9 trillion.

According to data from industry organization ADP Employer, job growth in the U.S. in April was only 247 thousand – the smallest rise in two years. The average forecast of analysts assumed a more significant increase: by 395 thousand according to the results of the Trading Economics survey and by 390 thousand among respondents of The Wall Street Journal.

Meanwhile, March data was revised up to a 479k increase from the previously announced 455k rise.

Tomorrow will be published official data on the state of the labor market last month. Experts expect that the number of jobs in the economy grew by 394-400 thousand, and unemployment fell to 3.5% from 3.6% in March.