Stocks Tank as Fed Not Likely to Cut Rates Soon

The S&P 500 gave up earlier gains and closed lower after Federal Reserve Chair Jerome Powell signaled the central bank isn’t ready to cut rates, as it assesses the impact of President Donald Trump’s higher tariff levels on the inflation picture. The Dow Jones Industrial Average was thumped 171.71 points to 44,461.28. The broader index dipped 7.96 points to 6,362.90. The NASDAQ was positive 31.38 points to 21,129.67. The post-Fed losses were led by consumer-focused stocks like Home Depot, which could benefit from lower rates. Investors parsed Powell’s comments at a press conference for insights into the Fed’s next move — after it didn’t budge on rates following its July meeting. Powell said that the central bank has “made no decisions” about a potential policy change in September. The comments poured cold water on traders hoping for a rate cut in September and at least another decrease before the year is out. Treasury yields jumped as Powell signaled it may take a bit to assess the effect of tariffs on consumer prices. Wall Street will get more earnings after the bell Wednesday, with Meta Platforms and Microsoft set to report. Prices for the 10-year treasury slumped, raising yields to 4.37% from Tuesday’s 4.32%. Treasury prices and yields move in opposite directions. Oil prices advanced $1.27 to $70.48 U.S. a barrel. Gold prices plummeted $57.50 at $3,323.70 U.S. an ounce.