Stock Market Today: Dow Drops 699 Points After Powell Speech
Fed Chair Powell warned of a slowing economy and higher inflation but said the central bank isn't ready to cut rates just yet.



Stocks opened lower Wednesday and stayed there through the close. A strong March retail sales report could not quiet investors' skittishness and selling accelerated after Federal Reserve Chair Jerome Powell said that the central bank remains in no rush to cut rates.
Ahead of the opening bell, the Census Bureau said that retail sales rose 1.4% month over month in March – a notable jump from February's 0.2% increase and the biggest monthly gain since January 2023.
The impressive growth was driven by a 5.3% month-over-month increase in sales of cars and auto parts. Excluding these, retail sales were up 0.5%.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While today's solid retail sales report would typically "be a good thing for markets, it is very possible that consumers are front-loading their purchases and we may be seeing an artificial bump in sales," says Chris Zaccarelli, chief investment officer for Northlight Asset Management.
The front-loading of purchases came in the lead-up to President Donald Trump's Liberation Day, where he announced sweeping retaliatory tariffs, and sparked a historical stock market sell-off. Most of these tariffs have since been paused, but only temporarily.
Zaccarelli notes that the "uncertainty over tariff policy may be causing even more damage than any policies" that the Trump administration may eventually implement.
Powell talks rate cuts in speech today
Uncertainty over the Trump administration's plans for tariffs and how that's impacting the markets isn't keeping Fed Chair Powell up at night.
In a Q&A session at the Economic Club of Chicago this afternoon, Powell said that "markets are doing what they're supposed to do," and that the Fed will not intervene if the stock market plummets.
Powell also said that while the economy is "moving away" from the central bank's dual mandates for price stability and full employment, the Fed is "well-positioned to wait for greater clarity" before making changes to current monetary policy. In other words, it's in no hurry to cut interest rates prematurely.
This was certainly not what market participants wanted to hear. At the close, the blue chip Dow Jones Industrial Average was down 1.7% at 39,669, the broader S&P 500 was off 2.2% to 5,275, and the tech-heavy Nasdaq Composite was 3.1% lower at 16,307.
Nvidia leads tech stocks lower
All but one of the 11 S&P 500 sectors finished lower today – energy being the outlier.
And tech stocks bore the brunt of the selling after artificial intelligence (AI) chipmaker Nvidia (NVDA) late Tuesday said it will incur a $5.5 billion charge in its first-quarter results.
This is after the U.S. government told the chipmaker that it will need new licenses to export its H20 processors to China and other countries.
"While NVDA has historically adapted to export controls by developing China-specific products, we estimate that this development puts about 8% to 10% of the company's revenue tied to China servers at risk," says CFRA Research analyst Angelo Zino.
Nvidia stock fell 6.9% today, losing $188 billion in market value. For context, this is the entire market cap of blue chip stock Verizon Communications (VZ, -2.0%).
Fellow chip stocks Advanced Micro Devices (AMD, -7.4%) and Broadcom (AVGO, -2.4%) also sold off.
Related content
- What Stocks Are Politicians Buying and Selling?
- Is the Stock Market Open on Good Friday in 2025?
- Ray Dalio Is Ringing Alarm Bells About 'Something Worse Than a Recession'
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Buffered ETFs for a Rocky Market
Buffered ETFs provide protection during market downturns, but in exchange, your gains are capped.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them Up
A midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)
A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.
-
Stock Market Today: Markets Discount Another U.S. Downgrade
After Friday's closing bell, Moody's followed Standard & Poor's and Fitch and cut its rating on U.S. government debt.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
What's Next for Stocks After a Chaotic Spring
A chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term Care
Many people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.