Daily Fundamental Update: US Markets Fell on Wednesday as Fed Chair Powell Warned About Inflation

Nvidia Stocks Fell More than 6% on Wednesday
On Wednesday, US markets fell sharply after Powell’s speech in Chicago as he warned of higher inflation resulting from increasing tariffs. The Fed chairman highlighted the difficulty that the policy markers will face in achieving the Federal Reserve’s dual mandate of controlling inflation and maintaining high employment numbers. Invidia shares suffered big losses yesterday as the stock fell 6.9% by the close.
The Dow Jones Industrial Average fell nearly 700 points yesterday or 1.73%, closing at 39,669.39. The S&P 500 dropped 2.24% and closed at 5,275.70, . The Nasdaq Composite closed 3.07% lower at 16,307.16.
Volatility Index Edges Higher Again
As fears of a recession continue to weigh on the markets, The VIX rose 4 points to above 34, after three sessions of declines. The index had previously touched 60 this month amid tariff-related market volatility.
Australia’s March job additions of 32,200 missed the expected 40,000, while unemployment rose to 4.1% from 4%, though below the forecast 4.2%.
Japan’s March exports grew 3.9% year-over-year, below the expected 4.5% and February’s 11.4% gain. The trade deficit narrowed to 544.1 billion yen, though exceeding estimates of 485.3 billion yen.
The European Central Bank (ECB) may cut interest rates today amid recession concerns due to US tariffs, falling inflation, and euro strength.