US stock markets closed higher, driven by expectations that the Federal Reserve (Fed) will not, after all, raise interest rates beyond the level the markets have already listed. This after fears that the monetary authority would adopt a more aggressive stance in recent days hampered gains in risky assets.

The S&P 500 rose 1.61% to 4,045.64 point, the Nasdaq Technology Index added 1.97% to 11,689.01 point — in the case of the largest increase since February 7 — and the Dow Jones Industrial Average rose 1.17% to 33,390.97 points.

Investors maintained their sentiment even after the release of data showing that activity in the US services sector accelerated again in February. The theory is that the effect of higher interest rates on the economy tends to be felt for some time.

Sentiment around stock markets seems to have changed after Atlanta Fed Governor Raphael Bostick admitted that the central bank may be able to pause interest rate hikes this summer. The comment was seen as more benign, although many Fed policymakers maintain the position that monetary authority should be guided by economic data.

Among the main movements, the highlight is Tesla, which rose in value by 3.61%, a day after titles fell by 5.85%.