US stocks fell Wednesday as Federal Reserve Chair Jerome Powell warned that President Donald Trump’s tariffs are unprecedented in modern history, with effects that “remain highly uncertain.”
A number of stocks fell in the afternoon session after Federal Reserve Chair Jerome Powell signaled a cautious stance on future monetary policy decisions during a speech in Chicago, emphasizing that trade tariffs could add upward pressure to inflation in the short term and complicate the Fed's efforts to stabilize the economy. He warned that such trade measures are "likely to move us further away from our goals," referring to the Fed's dual mandate of price stability and maximum employment.
A number of stocks fell in the afternoon session after Federal Reserve Chair Jerome Powell signaled a cautious stance on future monetary policy decisions during a speech in Chicago, emphasizing that trade tariffs could add upward pressure to inflation in the short term and complicate the Fed's efforts to stabilize the economy. He warned that such trade measures are "likely to move us further away from our goals," referring to the Fed's dual mandate of price stability and maximum employment.
In a speech on Wednesday, Federal Reserve Chair Jerome Powell warned of higher prices, “continued volatility” in the markets, and the looming threat of stagflation.
President Donald Trump’s “Liberation Day” tariffs set off one of the most volatile periods of stock trading in U.S. history – and uncertainty still looms over Wall Street, analysts told ABC News. Tariffs remain the primary mover of stock prices, putting market strategists and everyday investors in the near-impossible position of anticipating Trump’s next decision and its potential fallout, the analysts said. Analysts warned of a possible economic downturn that would pummel stocks but urged investors to hold on to shares if they can resist the temptation to sell, since markets typically rise over the long term.
Federal Reserve Chair Jerome Powell said Wednesday that he expects President Donald Trump's tariffs policy to cause higher inflation and slower economic growth, complicating potential central bank efforts to ease the fallout. Powell's remarks immediately sent stocks lower as investors digested the top central banker's concern about the tariffs. Within minutes, the Dow Jones Industrial Average fell 690 points, or 1.7%, more than tripling losses suffered over the course of the day before Powell's comments.
Abbott Laboratories shares surged Wednesday after the medical device maker said it plans to invest $500 million in U.S. operations and topped Wall Street’s expectations with its first-quarter results.
The US stock market is closed Friday in observation of Good Friday. So is the bond market, which also closes early Thursday.
Boeing shares remained in focus Wednesday as investors digested yesterday's reports that China told its airlines not to take more deliveries of the company's jets amid an intensifying trade war between Washington and Beijing. Monitor these important chart levels.
Exporters attending China’s biannual trade fair in Canton were emphatic about the need to look beyond selling to Americans. China has been highlighting its focus on trade with countries other than the United States at various trade fairs that are showcasing its vast market and competitiveness as a manufacturing giant. U.S. President Donald Trump announced sweeping tariffs of 145% on all products imported from China.