Live Video: Courtroom testimony from the Alex Murdaugh double murder trial - WJCL News Savannah

Federal Reserve hikes rates by 25 bps Powell says for first time disinflation has started Indexes up: Dow 0.02%, S&P 1.05%, Nasdaq 2%

Feb 1 (Reuters) - The S&P 500 and the Nasdaq closed sharply higher on Wednesday after Federal Reserve chair Jerome Powell acknowledged that inflation was starting to ease, in remarks he made following a quarter-point rate hike by the U.S. central bank.

Investors were encouraged by Powell's answer to a question about easing financial conditions such as rising equities and falling bond yields in recent months, according to Angelo Kourkafas, investment strategist at Edward Jones, St Louis.

Of the S&P 500's 11 major industry sectors only energy ended the day lower(.SPNY), down 1.9%, while interest rate sensitive technology shares(.SPLRCT) were the biggest gainers, up 2.3%.

Recent readings have indicated that inflation is easing, with the Fed also looking at data that will determine the resilience of the labor market and the pace of wage growth.

But data showed U.S. job openings unexpectedly rose in December ahead of the Labor Department's comprehensive report on nonfarm payrolls for January due on Friday.