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'
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.
-
Trump Targets Student Loan Forgiveness: Here’s How Taxes and Repayment Could Soon Change
Student Loans The so-called One Big Beautiful Bill and the Trump administration’s executive action are making the future of student loan forgiveness and its tax consequences uncertain.
-
California, South Florida, Long Island, New Jersey: The Places People Are Leaving in Droves in 2025
Skyrocketing costs and shifting priorities mean people are packing up and leaving some cities and states in droves, while others are flocking to more affordable or lifestyle-friendly destinations.
-
Should You Start a 'Trump Account' for Your Child?
"Trump Accounts" for kids is part of the One Big, Beautiful Bill that was just signed. Look at if it's worth it for your children.
-
I'm a Financial Strategist: This Is the Investment Trap That Keeps Smart Investors on the Sidelines
Forget FOMO. FOGI — Fear of Getting In — is the feeling you need to learn how to manage so you don't miss out on future investment gains.
-
Can You Be a Good Parent to an Only Child When You're Also a Business Owner?
Author and social psychologist Susan Newman offers advice to business-owner parents on how to raise a well-adjusted single child by avoiding overcompensation and encouraging chores.
-
How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
Financial advisers need to be strategic when they communicate with clients during market volatility. The goal is to not only reassure them but to also help them avoid rash decisions, deepen your relationship with them and build lasting trust.
-
Stock Market Today: President Trump Reboots the Tariff Trade
A broad consensus that markets hate uncertainty more than anything else is being tested on an almost daily basis in 2025.
-
The 60-40 Portfolio Rule of Investing: Not Dead Yet?
Adding alternative investments to a balanced portfolio can smooth out returns.
-
The Hidden Costs of Caregiving: Crisis Goes Well Beyond Financial Issues
Many caregivers are drained emotionally as well as financially, leading to depression, burnout and depleted retirement prospects. What's to be done?
-
Cash Balance Plans: An Expert Guide to the High Earner's Secret Weapon for Retirement
Cash balance plans offer business owners and high-income professionals a powerful way to significantly boost retirement savings and reduce taxes.