The NASDAQ index, which traded as much as 1.3% lower earlier in the session, regained its footing by early afternoon.

By the close, the Dow hit a record high in the session.

The S and P and the NASDAQ also finished with solid gains.

The major indexes staged a comeback after Federal Reserve chair Jerome Powell's comments on his second day of testimony to Congress soothed inflation worries.

Carin Pai is head of equity strategy at Fiduciary Trust International.

This is, AH, confidence for markets, a confidence booster in terms of the Fed's commitment to keeping rates low and to support the economy.

I don't think that the Fed will raise rates too quickly.

I think they've committed Thio, um not do anything to sort of disrupt the potential for the economy to regain its footing.

Among the biggest movers on Wall Street game stop, the video game retailer surged more than 100% before shares were halted.

It announced this week its chief financial officer will resign.

The company was at the center of a stock trading frenzy in late January, which saw retail investors drive up its stock hitting hedge funds who had been betting against the company.

Tesla, meanwhile, gained 6% after star investor Cathie Wood's Ark Invest Fund bought more shares to the tune of $171 million in the wake of a sharp fall in the electric carmaker's stock.