Fed Chair Powell sinks stocks on tariff comments

Investors have stepped up sales of U.S. stocks after Federal Reserve Chairman Jerome Powell said policymakers would stand up to some move, and then they would stand up to some move, mainly because President Donald Trump’s tariffs are greater than expected.

He messaged it while channeling the fictional character Ferris Bueller from the 1986 film Ferris Bueller’s Day Off.

“As that great Chicago Ferrisbuhler once said, “Life moves pretty quickly.” For the time being, we are well positioned to wait for more clarity before considering adjustments to policy stances,” he said in a prepared remarks at the Chicago Economic Club.

Fed’s Powell says central banks could face “challenging scenarios” due to tariffs

All three main averages were already low in the midday trade, but slid deep into the red at the closed bell.

Nasdaq composites have beenar the brunt of losses, falling above 3%, with Tesla, Starbucks and Amazon among the biggest losers.

In Technology Stock, the S&P 500 fell by more than 2%, but consumer discretion and telecom stocks also fell.

Trump blows up China in an attempt to deceive tariffs

The Dow Jones industrial average fell 699.57 points (1.7%), led by Amgen and Apple, with Chevron and travellers below selling. Energy stock recorded moderate profits as oil rose above $62 per barrel mark.

In the bond market, the 10-year-old Treasury yield was reduced to 4.2%.

Trump continues to send a message to his customs strategy, including the recent 90-day suspension, whilst exempting several technology products, including smartphones.

Over 60% of market participants are hoping to cut interest rates at their June meeting, followed by another meeting in July.

Powell also placed emphasis on inflation.

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“It is very likely that tariffs will at least produce a temporary rise in inflation. The inflation effect may be more sustained. The outcome will depend on the size of the effect, the time it takes to fully pass to the price, and ultimately, fully locking in the long-term inflation expectations,” he said.

Another inflation indicator can be seen in gold prices. This marked the largest daily percent increase since April 2020, reaching a fresh record of $3,326.60 per ounce, as tracked in Dow Jones market data.

The largest SPDR ETF, backed by physical gold, also rose in tandem.