Wall Street Slump: Markets Reel Amid Fed's Mixed Messages
U.S. stock indexes fell after Federal Reserve Chairman Jerome Powell's cautious remarks on interest rates. Tech shares, led by declines in Nvidia, closed lower, while Treasury yields slid, and gold prices surged. Investors are seeking clarity from the Fed amid mixed signals on future monetary policy changes.
Wall Street's stock indexes ended a streak of artificial intelligence-fueled record highs on Tuesday as Federal Reserve Chair Jerome Powell struck a cautious tone on future interest rate decisions. This tempered investor optimism, leading to a drop in U.S. Treasury yields.
Technology stocks, which had been surging, took a hit as Nvidia shares fell 2.8% after recently marking record gains. The Nasdaq Composite led the declines, slipping 0.95%, followed by smaller drops in the Dow Jones Industrial Average and the S&P 500.
In response to Powell's speech, investors slightly adjusted their expectations for an October rate cut. Treasury yields declined, with the 10-year note dropping to 4.106%. Meanwhile, gold shone bright as a safe-haven asset, reaching new highs amid the uncertain market environment.
(With inputs from agencies.)
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