Major indices fell after the Federal Reserve signaled a more restrictive policy path to combat inflation than markets anticipated.
US equities declined following the Federal Reserve’s first meeting under Chair Kevin Warsh, who adopted a hawkish stance on inflation. The central bank’s updated dot plot indicated a more aggressive policy trajectory, lifting Treasury yields and strengthening the US dollar. Stocks retreated in response, though losses remained contained rather than triggering a broader selloff.
At the close, the Dow Jones Industrial Average dropped 0.97%, the S&P 500 fell 1.21%, and the Nasdaq Composite declined 1.34%. The Russell 2000 shed 0.72%. The declines pushed all major indices below their 100-hour and 200-hour moving averages, shifting near-term momentum toward sellers.
Technical levels now favor downside risks, with the S&P 500 closing at 7420.11, below its 100-hour (7488.34) and 200-hour (7462.77) averages. The Nasdaq settled at 26,021.66, also under its converged 100-hour and 200-hour moving averages near 26,335. Buyers must reclaim these levels to regain control.