Wall Street had rallied Wednesday but then turned lower after the Federal Reserve signaled that interest rate increases could come as soon as the next meeting in March.
Even though Wednesday’s monetary policy update was broadly in line with expectations, the Fed’s confidence about raising rates and normalizing its massive balance sheet were a little too much for investors to handle.
The Dow finished 0.4%, or 130 points, lower.
The S&P 500 closed down 0.1%.
The Nasdaq Composite ended flat.
All three indexes had spent most of the day trading sharply higher before the post-Powell drop. Wednesday was no exception in the recent string of volatile days in the market.