https://www.irishsun.com/news/274607443/powell-fails-to-sway-us-markets-indices-drop-across-board
NEW YORK, New York - Positive news on two fronts resulted in a surprise negative dive by U.S. stock markets Wednesday.
The U.S. Federal Reserve slashed official interest rates by 50 basis points as the FOMC committee indicated it was confident of achieving and maintaining the Fed’s two-percent inflation target, while Fed chair Jerome Powell dismissed the risk of a recession.
Despite this, stocks retreated with the Dow Jones giving up 375 points after the FOMC interest rate announcement.
“I don’t see anything in the economy right now that suggests that the likelihood of a recession, sorry, of a downturn is elevated,” Powell said at a press conference following the conclusion of the FOMC meeting.
“I don’t see that,” he continued. “You see growth at a solid rate. You see inflation coming down. You see a labor market that’s still at very solid levels. So, I don’t really see that now.”
Nonetheless the mood turned sour. Following are the closing quotes on Wednesday for the major indices:
The Standard and Poor’s 500 fell by 16.32 points, or 0.29 percent, to close at 5,618.26, with a trading volume of 2.429 billion. The index faced pressure as multiple sectors, including technology and healthcare, recorded losses amid concerns over inflation and potential interest rate hikes.
The Dow Jones Industrial Average dropped by 103.08 points, or 0.25 percent, ending the day at 41,503.10. Trading volume on the Dow reached 378.797 million, as investors remained cautious, awaiting further clarity on the economic outlook.
The NASDAQ Composite, which is heavily weighted toward technology stocks, declined by 54.76 points, or 0.31 percent, to close at 17,573.30. The index saw a trading volume of 4.865 billion, as tech stocks led the broader market downturn.
Global Stock Market Summary for Wednesday
On Wednesday, major global indices showed mixed performance, with European markets closing mostly lower while Asian markets saw gains in some regions.
CANADA
Canada’s S&P/TSX Composite Index fell by 85.10 points, or 0.36 percent, to close at 23,592.60 Wednesday. The index recorded a trading volume of 238.562 million as energy and financial sectors pulled the market lower.
The DAX Performance-Index in Germany saw a slight dip of 14.59 points, or 0.08 percent, finishing at 18,711.49.
In contrast, Asian markets showed signs of strength. Hong Kong’s Hang Seng Index gained 237.90 points, or 1.37 percent, to close at 17,660.02, while Singapore’s STI Index experienced a marginal loss of 1.00 point, or 0.03 percent, ending at 3,592.42.
THE JNOU.JO in South Africa closed basically flat having inched up 0.68 of a point or 0.01 percent to close Wednesday at 4,582.30.
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