Equities Calm Interrupted By Powell Warnings – US Market Wrap

Warnings from Jerome Powell that trade tensions could undermine the Federal Reserve’s employment and inflation targets sparked more turbulence on Wall Street Thursday, with equities resuming sharp declines and haven assets such as Treasuries and gold surging.

Two days of relative quiet were interrupted when the Fed chairman signaled a wait-and-see approach to President Donald Trump’s tariff offensive, deflating expectations that he would intervene fast to reassure markets. Stocks extended their losses, which began earlier when two major semiconductor companies disclosed profit disappointments connected to the global trade conflict.

The S&P 500 sank 2.2%. Technology stocks took the brunt of the beating, with the Nasdaq 100 tumbling 3.0% after the White House imposed new restrictions on Nvidia’s chip exports to China. The yield on 10-Yr Treasuries fell around five basis points to 4.28%.