U.S. stock markets suffered heavy losses at Wednesday's close on Wall Street after Federal Reserve Chairman Jerome Powell raised concerns about the economic consequences of President Donald Trump's tariff policies.

Market Performance

• S&P 500: Dropped 120.93 points (2.24%)

• Dow Jones Industrial Average: Fell 699.57 points (1.73%)

• NASDAQ Composite: Plunged 516.01 points (3.07%)

Key Catalyst

The broad sell-off followed Powell's stark warning:
"The global tariffs announced by Trump have been far larger than expected," with effects likely to:
✓ Drive inflation higher
✓ Slow economic growth
✓ Create policy challenges for the Federal Reserve

Market Reaction

• Worst single-day decline since [Month] 2024

• All S&P 500 sectors closed in negative territory

• Trade-sensitive stocks (Boeing, Caterpillar) led losses

Analyst Note: The sell-off reflects mounting investor concerns that tariffs may:
• Disrupt global supply chains
• Reduce corporate profit margins
• Force the Fed to maintain higher rates longer