Stock Market Today: Dow Drops As Fed's Powell Notes Economic 'Shocks' (Live Coverage)

Stocks finished near session lows amid a day of intense selling Wednesday after Federal Reserve Chair Jerome Powell cautioned that a prolonged war could exacerbate energy inflation. The comments came as indexes were already hit on the stock market today by rising oil prices and a dose of hotter-than-expected inflation data, and after the Fed decided to keep interest rates steady.

The combination of rising oil prices and Powell’s warning sent the Dow Jones Industrial Average below its 200-day moving average while the Nasdaq also undercut that level. Dow components dropped 1.6%, or 768 points. The S&P 500 tumbled 1.4%, and the tech-heavy Nasdaq composite lost 1.5%. The small-cap Russell 2000 index slid 1.6%.

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Brent oil, the international benchmark, bounded more than 5% higher, moving near $110 a barrel. Prices climbed after Iran threatened retaliatory attacks on oil facilities in the Gulf region.

Earlier Wednesday, in a bid to stabilize the oil market, President Donald Trump issued a 60-day waiver of the Jones Act. The act mandates that the transport of goods between U.S. ports be undertaken by U.S. vessels. Despite the move, West Texas intermediate oil moved up to near $99 a barrel.

Volume on the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Tuesday. Decliners outnumbered advancers by nearly 4-to-1 on both exchanges.

The yield on the benchmark 10-year Treasury note jumped seven basis points to 4.27%.

3:44 p.m. ET

Fed’s Powell Sees Rates ‘Modestly Restrictive’

Fed Chair Powell said policy was “modestly restrictive” as the committee waits for tariffs to go through the system and goods inflation abates. Meanwhile, he noted that the economy remained resilient amid higher productivity. However, an extended conflict in the Middle East could put upward pressure on inflation.

Powell also said he would serve as Fed’s “Chair ProTem” if a new chief is not appointed when his term ends in May. Powell also said he would continue on the board until the criminal investigation trained on him by the Trump administration comes to an end.

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3:06 p.m. ET

Powell Notes Inflation ‘Somewhat Elevated’

In his penultimate press conference as head of the Fed, Powell noted that inflation remains somewhat elevated relative to the Fed’s target rate of 2%, while job gains have been low.

However economic activity appears to have been chugging along at a solid pace, he added. While rising oil prices pose a risk amid the unfolding U.S.-Iran war,  it is too soon to determine the impact on inflation.

Powell noted that a series of shocks, starting from tariffs to the war that has spurred energy prices, contributed to persistent inflation that continues to be above the Fed’s target rate.

2:18 p.m. ET

Fed Keeps Rates Pat

On Wednesday, the Federal Reserve maintained interest rates at 3.5% to 3.75%. Stephen Miran was the only Fed board governor to vote against the action, preferring to lower rates by 25 basis points.

In a summary of economic projections, the Fed signaled one rate cut in 2026.

2: 01 p.m. ET

Dow Jones Stocks: Nvidia Gets China Chip Order

Nvidia (NVDA) edged higher after Chief Executive Jensen Huang told reporters at the company’s annual GTC conference that China had placed orders for the H200 processor, bringing three months of uncertainty to a close. Shares rose in a base with a buy point of 212.19.

Among other Dow components, Chevron (CVX) was a top gainer. Shares climbed 1% to hit the 200 mark, scoring an all-time high.

But nine other stocks in the index fell 2% or more, including Amazon (AMZN), Walmart (WMT), Home Depot (HD), Nike (NKE), Visa (V), Amgen (AMGN), Sherwin-Williams (SHW), 3M (MMM) and Procter & Gamble (PG).

12:57 p.m. ET

Stock Market Today: Retailer Williams-Sonoma Jumps

Williams-Sonoma (WSM) surged after the kitchenware retailer reported a strong earnings finish for fiscal 2025. Fourth-quarter earnings came in at $3.04 per share, above estimates of $2.91, while sales totaled to $2.4 billion — closely aligned with views.

The home furnishings provider raised its dividend in March by 15% or 76 cents per share. Full-year outlook pointed to a 4.7% increase in sales at the midpoint.

Williams-Sonoma shares jumped 6% and retook their 200-day moving average.

12:24 p.m. ET

Data Center Name Triggers Sell Signal

In stocks, Jabil (JBL) pared some of its steep losses after the electronics contract manufacturer posted $2.69 in earnings per share for its second quarter on sales of $8.3 billion. Demand for its cloud and data center infrastructure business segments was strong.

The company gave a third-quarter outlook of $3.03 in earnings per share and $8.5 billion in sales at the midpoint. That came in above Wall Street’s estimates of $2.89 in earnings per share and $8 billion sales.

For the full year, Jabil expects $12.25 in earnings per share and sales of $34 billion.

Shares had tumbled 9%, undercutting their 50-day moving average and triggering a sell signal. But the stock pared losses to less than 2% in recent action.

11:42 a.m. ET

Stock Market Today: Docusign Extends Gains

Docusign (DOCU) pushed higher after the enterprise software company issued a strong sales outlook, a bolstered share buyback plan and beat expectations for fourth-quarter results.

The company offered an $824 million midpoint sales outlook for the first quarter, above estimates of $819 million. Fourth-quarter earnings of $1.01 per share and sales of $837 million accelerated from the year-ago period.

Docusign also said it will increase its share repurchase program up to $2 billion. Its remaining authorization is up to $2.6 billion.

Its stock on Tuesday extended its gain to more than 2%. Docusign stock has been in a downtrend since September.

10:41 a.m. ET

Lululemon Climbs On Earnings Beat

Lululemon Athletica (LULU) stock jumped as investors shrugged off a weaker-than-expected outlook following an earnings beat for its fourth quarter. The athletic apparel and accessories maker said it earned $5.01 per share on sales of $3.6 billion. Both were above Wall Street’s consensus estimate of $4.78 per share and sales of $3.57 billion.

Shares fell in late trading Tuesday after first-quarter guidance fell short. Lululemon anticipates $1.66 earnings per share at the midpoint of its range, and sales of $2.42 billion. FactSet estimates call for $1.85 per share on $2.5 billion in sales.

Shares are in a downtrend but pushed higher by 3% as trading got underway Wednesday.

9:39 a.m. ET

Nasdaq 100 Winners, Losers: Monolithic, Strategy

Among Nasdaq 100 stocks, Monolithic Power Systems (MPWR) rallied more than 1%, making it one of the best performers just after the market open.

Meanwhile, bitcoin play Strategy (MSTR) declined nearly 4% in morning trading.

9:13 a.m. ET

Dow Jones Movers: Chevron, Amazon, Apple

Inside the Dow Jones industrials, Chevron (CVX) and Johnson & Johnson (JNJ) rose fractionally in early morning trading.

On the downside, Amazon (AMZN) and Apple (AAPL) declined 0.9% and 0.3%, respectively. Both threatened to snap two-day rallies.

8:45 a.m. ET

Stock Market Today: Surprise Inflation Data

Early Wednesday, the Labor Department said the producer price index rose 0.7% in February, with an annual increase of 3.4%, both higher than estimates. The core PPI, which excludes food and energy, rose 0.5% on the month and 3.9% year over year. Those were also higher than expected.

Forecasts called for the PPI to rise 0.3% on the month for February and 3% year over year. Core PPI was seen rising 0.5% in February and 3.7% year over year.

8:08 a.m. ET

Rocket Lab Slides On Stock Offering

Space stock Rocket Lab tumbled nearly 4% premarket Wednesday after the company announced a $1 billion stock offering.

Shares had surged more than 10% Tuesday, retaking their 50-day line for the first time since Feb. 19. The stock is forming a cup base with a 99.58 buy point.

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Stock Market Today: Earnings Movers: Macy’s, Oklo

Key earnings movers were General Mills (GIS), Jabil (JBL), Macy’s (M) and Oklo (OKLO).

Shares of General Mills lost more than 1%, while Jabil stock climbed more than 1%. Macy’s stock soared nearly 9%. And Oklo shares gained more than 1% in premarket trading.

Notably, Micron Technology (MU) is set to report after the market close. Shares climbed nearly 2% in early morning action.

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Stock Market Today: Fed Decision, Powell Press Conference

The Labor Department’s producer price index, a measure of wholesale inflation, is due at 8:30 a.m. ET. The PPI is expected to rise 0.3% on the month for February, according to Econoday estimates.

Meanwhile, the Federal Reserve’s two-day policy meeting concludes Wednesday with an interest rate decision at 2 p.m. ET, which is followed up by Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET.

December’s Fed projections anticipated just one rate cut in 2026. The new data will probably stick to that. The key economic variable is the length of the war and its impact on the price of oil, which the Fed won’t try to predict.

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_Be sure to follow Scott Lehtonen on X _at @IBD_SLehtonen for more on growth stocks, the Dow Jone__s Industrial Average and the stock market today.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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