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Wall Street ended lower on Wednesday after Federal Reserve Chair Jerome Powell stated that the central bank would keep interest rates steady at 4.25-4.50% until there’s more clarity on the economy. The Nasdaq Composite, the Dow and the S&P 500 ended in negative territory. U.S. markets will be closed on Friday in observance of Good Friday.

 How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) fell 1.7%, or 699.57 points, to close at 39,669.39. Twenty-five components of the 30-stock index ended in negative territory, while five ended in positive. The major loser of the Dow was NVIDIA Corporation NVDA. The stock price of this computing infrastructure company rose 6.9%. NVIDIA currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

The tech-heavy Nasdaq Composite declined 516.01 points, or 3.1%, to close at 16,307.16.

The S&P 500 lost 120.93 points, or 2.2%, to close at 5,275.70. One out of 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLP) fell 3.5%, 2.7% and 2.5%, respectively.

The fear gauge CBOE Volatility Index (VIX) increased 8.4% to 32.64. A total of 16.08 billion shares were traded on Wednesday, lower than the last 20-session average of 18 billion. Decliners outnumbered advancers by a 1.58-to-1 ratio on the NYSE and by a 2.02-to-1 ratio on the Nasdaq.

Powell Cautions on Tariffs, Holds Steady on Rates

Federal Reserve Chair Jerome Powell told the Economic Club of Chicago on Wednesday that the Fed would maintain its benchmark interest rate between 4.25-4.50% because the economy needed more clarity before policy adjustments. The Fed Chair explained that Trump's tariff policies would increase inflation while damaging job creation, which would push both metrics away from the desired 2% inflation and full employment targets. The tariffs have created more significant problems than anticipated, according to Powell, who added that business confidence and economic expansion suffer from trade uncertainty.

The Federal Reserve Chair discussed market volatility by dismissing the "Fed put" concept while confirming that markets behave according to expectations despite ongoing economic uncertainty. The Federal Reserve maintained its independence, which implies that economic data rather than political influence would direct monetary policy decisions.

Retail Sales Jump in March

The Department of Commerce reported that retail sales in March were up 1.4% compared with the consensus estimate of up 1.3%. The metric for February was revised upward to an increase of 0.2%. Retail sales were up 4.6% year over year.

Core retail sales (excluding auto) increased 0.5% in March. The metric for February was an increase of 0.7%.

U.S. Capacity Utilization Falls in March

Capacity Utilization for March came in at 77.8, per a report by the Federal Reserve. The number for February was revised down to 78.2.

U.S. Industrial Production Declines in March

Per a report by the Federal Reserve, Industrial Production for March came in at a decline of 0.3%. The number for February was revised to an increase of 0.8% from the previously reported 0.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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