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US Stocks tumble after Powell's comments

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Last Updated : Feb 01 2024 | 2:35 PM IST
The US stock market finished session steep lower on the last trading day in January, Wednesday, 31 January 2024, after Federal Reserve chairman Jerome Powell held interest rates steady while reiterating that the central bank likely wouldnt be ready to cut rates in March.

As expected, the Federal Open Markets Committee (FOMC) left its key policy rate unchanged at 5.25%-5.50%. Federal Reserve chairman Jerome Powell seemingly threw cold water on the markets expectation for a March cut, noting further encouraging data on inflation was needed.

At closing bell, the Dow Jones Industrial Average index retreated 317.01 points, or 0.82%, to 38,150.30. The S&P500 index fell 79.32 points, or 1.61%, to 4,845.64. The tech-heavy Nasdaq Composite index dropped 345.89 points, or 2.23%, to 15,164.01.

All 11 S&P500 sectoral indices declined, with information technology and communication services sectors being worst performers, falling 2.11% and 3.93%, respectively.

Chipmaker Advanced Micro Devices slumped by 2.5 percent after reporting fourth quarter earnings in line with estimates but providing disappointing first quarter guidance.

Shares of Microsoft moved to the downside after the software giant reported better than expected fiscal second quarter results but forecast third quarter revenues below estimates.

ECONOMIC NEWS: Payroll processor ADP released a report showing private sector employment rose by 107,000 jobs in January after climbing by a downwardly revised 158,000 jobs in December.

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First Published: Feb 01 2024 | 8:20 AM IST

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