Stock Market Woes: Fed Chief's Remarks Trigger Sell-Off

The U.S. stock market experienced a decline following comments by Federal Reserve Chair Jerome Powell, indicating a slowdown in economic growth. The S&P 500, Dow Jones, and Nasdaq all fell significantly, with chipmakers particularly affected by fears over tariffs and trade policies.

The major U.S. stock indexes continued to experience a downturn in Wednesday's afternoon trading session. The S&P 500 fell over 2% after Federal Reserve Chair Jerome Powell indicated a slowing of economic growth, despite the ongoing strength of the U.S. economy. Powell's statements came during an event at the Economic Club of Chicago.

'Powell's saying what the market has been fearing all along,' explained Peter Cardillo, chief market economist at Spartan Capital Securities. 'And it's coming from the Fed chief, confirming all these things.' Before these remarks, the S&P 500 had already decreased by more than 1%, with chipmakers suffering the most after Nvidia announced potential challenges due to new U.S. restrictions on chip exports to China.

The Dow Jones Industrial Average dropped by 631.82 points, or 1.57%, to 39,737.14, the S&P 500 decreased by 127.09 points, or 2.35%, to 5,269.54, and the Nasdaq Composite fell by 576.59 points, or 3.43%, to 16,246.63. Global semiconductor stocks were notably affected as shifting trade policies presented uncertainties for the sector.

(With inputs from agencies.)