Stocks declined on Thursday as Wall Street analysed comments made by Federal Reserve Chair Jerome Powell and kept an eye on a significant turning point for a closely watched Treasury bond yield.
In order to reach 33,414.17, the Dow Jones Industrial Average lost 250.91 points, or 0.75%, of its value. The Nasdaq Composite finished lower by 0.96% at around 13,186, while the S&P 500 fell 0.85% to 4,278.
Powell noted recent statistics showed progress towards reducing prices while also stating that inflation was still too high and would likely necessitate slower economic growth. The Fed Chair also stated that monetary policy was not yet too tight during a speech at an event on Thursday at the Economic Club of New York.
According to Powell, “incoming data over the past few months demonstrate ongoing progress towards both of our dual mandate goals—maximum employment and stable prices.”
However, he added, “in any situation, inflation is still too high.” It will take more than a few months of positive data to establish confidence that inflation is declining persistently and towards our target.