Jan 11 (Reuters) – U.S. stock indexes gained ground on Tuesday with Nasdaq leading the advance as investors were relieved that Federal Reserve Chair Jerome Powell’s testimony to Congress did not include any major surprises. Federal Reserve Chair Jerome Powell, in a congressional hearing that pointed to his likely confirmation for a second term in the job, said the U.S. central bank, was determined to ensure high inflation did not become “entrenched.” But he added that rather than diminishing job growth, the Fed’s tightening plans which include higher interest rates and a reduction in its asset holdings were necessary to maintain the economic expansion. After falling just 1% earlier in the day, the interest rate sensitive technology sector .SPLRCT bounced back and brought the broader indexes with it. Technology-laden Nasdaq closed up 1.4% marking its biggest daily gain so far this year. Powell’s comments likely reassured investors that the Fed was not going to prioritize inflation reduction above everything else, including employment, said Shawn Cruz, senior manager of trader strategy at TD Ameritrade in Chicago. “The initial concern was the Fed would upset the pace of the recovery,” said Cruz. But the investor takeaway from Tuesday’s testimony was that “he’s not just going to try and crush inflation” without regarding “the other effects that could have on the economy.” Investors had been selling stocks since Jan. 5 when December meeting minutes showed Fed officials discussing how “very tight” job market and unabated inflation might require interest rate hikes sooner than expected and a reduction of the Fed’s overall asset holdings as a second brake on the economy. While investors will anxiously watch inflation data due out on Wednesday, Cruz notes that they are already prepared for an elevated number with consensus forecasts for a 7% increase on a year-on-year basis for the headline Consumer Price Index (CPI). Core CPI, which excludes food and energy prices, is seen rising by 5.4%, according to economists polled by Reuters. The Dow Jones Industrial Average .DJI rose 183.15 points, or 0.51%, to 36,252.02, the S&P 500 .SPX gained 42.78 points, or 0.92%, to 4,713.07 and the Nasdaq Composite .IXIC added 210.62 points, or 1.41%, to 15,153.45. Eight of the 11 major S&P 500 sectors rose, with growth-heavy sectors like technology, consumer discretionary .SPLRCD and communications services .SPLRCL contributing most to the S&P’s gains. The biggest percentage gainer was energy .SPNY, which finished up 3.4%, as crude oil futures rose. OR The S&P snapped a five-day slump, while the Nasdaq .IXIC added to Monday’s tiny gain. It had started the week with an afternoon comeback that strategists attributed to an influx of retail investors hunting for bargains after an early session sell-off. Marko Kolanovic, chief global markets strategist at JPMorgan Chase & Co, on Monday issued a research note calling the recent pull-back in riskier assets “arguably overdone” and calling it a buying opportunity. Advancing issues outnumbered declining ones on the NYSE by a 3.05-to-1 ratio; on Nasdaq, a 2.23-to-1 ratio favored advancers. The S&P 500 posted 28 new 52-week highs and no new lows; the Nasdaq Composite recorded 42 new highs and 108 new lows. On U.S. exchanges 10.58 billion shares changed hands compared with the 10.55 billion average for the last 20 sessions. NN: a typical relief rally with the millennials buying on the dip…… again. As far as Powell he is spreading copious amounts of joy jell. He has no choice but to raise interest rates and get Fed Funds to 4% from zero where they are at now.