Dow Plunges 768 Points as Inflation Pressures Markets; Fed Holds Rates
U.S. stocks sold off on Wednesday after fresh economic data and comments from Federal Reserve Chair Jerome Powell reignited concerns that inflation could remain sticky. The risk-off move pushed major indexes sharply lower as investors reassessed how quickly the Fed can pivot toward easier policy amid rising uncertainty.
The Dow Jones Industrial Average fell 768.45 points, or 1.6%, marking a new closing low for 2026 and ending below its 200-day moving average. With its month-to-date decline now above 5%, the blue-chip index is on track for its worst month since 2022. The S&P 500 dropped 1.36%, while the Nasdaq Composite slid 1.46%.
The Federal Reserve kept the fed funds rate unchanged in a 3.5% to 3.75% range. In its post-meeting statement, the central bank added that the “implications of developments in the Middle East for the U.S. economy are uncertain,” highlighting the added complication of an energy shock linked to the Iran war.
During his press conference, Powell said policymakers still expect inflation to make progress, though not as much as previously hoped. “The forecast is that we will be making progress on inflation, not as much as we had hoped, but some progress on inflation,” he said.
The Fed also signaled it still expects one rate cut this year, but markets appeared more focused on the risk that persistent inflation—potentially worsened by higher energy prices—could keep policy restrictive for longer.
Source : Newsmaker.id
