by Caroline Valetkevitch

NEW YORK (Reuters) – The New York Stock Exchange ended lower on Wednesday, seeing gains posted during the session fade as comments from Federal Reserve (Fed) Chairman Jerome Powell left investors unclear about the US central bank’s rate hike campaign.

The Dow Jones index fell 0.80%, or 270.29 points, to 33,414.24 points.

The broader S&P-500 lost 28.83 points, or 0.70%, to 4,090.75 points.

The Nasdaq Composite fell for its part by 55.18 points (0.46%) to 12,025.33 points.

The main Wall Street indexes initially dipped in the green after the Fed indicated after its two-day monetary policy meeting that it was raising interest rates by 25 points as expected. base.

In its statement, the US central bank also hinted at a pause in its rate hike campaign.

However, Fed Chairman Jerome Powell stressed at a press conference that the Fed still considered inflation to be too high, adding that it was premature to say that the monetary tightening cycle was over.

“The Fed continues to walk a tightrope, in that it is trying to balance the credibility of its fight against inflation and the implementation of a soft landing” of the economy, commented Michael Arone, chief strategist at State Street Global Advisors in Boston.

As investors waited for signals that the Fed would pause rate hikes, fearing the central bank’s campaign could push the economy into recession, “it’s inconclusive,” said Alan Lancz, chairman of an eponymous investment advisory firm in Ohio. Data released today shows that US private sector companies ramped up hiring in April. However, there are signs of a slowdown in the labor market in the context of rising interest rates.

All major S&P-500 sectors ended the session in the red, with energy and financials posting the biggest declines.

On the values ​​side, in this earnings season, Advanced Micro Devices fell 9.3% after announcing a quarterly sales forecast below expectations, citing weak sales of PC computers.

( Jean Terzian)

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