Wall Street’s Rally Attempt Falters As Stocks Inch Lower

Wednesday’s stock market fell slightly as markets struggled to sustain a rebound from earlier in the day. Additionally, traders weighed comments from Federal Reserve Chair Jerome Powell, who reiterated the central bank’s commitment to fighting inflation. The Dow Jones Industrial Average dropped 47.12 points, or 0.15%, to 30,483.13, slipping in the final hour of trading. The S&P 500 dipped 0.13% to 3,759.89. The Nasdaq Composite fell 0.15% to 11,053.08.

Stocks have recently been impacted by growing concerns about a recession on Wall Street. In a statement to Congress on Wednesday, Federal Reserve Chair Powell said that the central bank “resolves” to tame inflation, which has risen to the highest level in 40 years. “At the Fed, we understand the hardship high inflation is causing,” the Fed chief said to the Senate Banking Committee. “We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so.” According to Powell, the Fed has decided to remain on course until it sees “compelling evidence that inflation is decreasing.” Achieving a soft landing for the economy without a recession has become “significantly more difficult.” Earlier this week, the Federal Reserve raised interest rates by 0.75 percentage points and hinted at the possibility of another increase of that magnitude next month. Investors are unnerved by the central bank’s decision last week to adopt a more aggressive approach to fighting inflation, which they fear will lead to a recession rather than a persistently high inflation rate.

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