Markets Waver as Fed’s Warsh Sidesteps Interest Rate Outlook

Wall Street finished the session in negative territory, with the Nasdaq Composite leading the slide by dropping 173.69 points, or 0.66%, to close at 26,040.03. The S&P 500 retreated 0.22% to 7,483.23, while the Dow Jones Industrial Average posted a marginal decline of 13.96 points to settle at 52,305.24. Despite the broad indices sliding, market breadth remained positive on the NYSE, where 1,555 issues advanced against 1,203 declines.

Warsh noted that inflationary pressures have softened since the Fed’s previous meeting, providing a slight reprieve for policy hawks. He pointed toward artificial intelligence as a potential economic wildcard, suggesting that productivity gains driven by the technology could carry significant weight for future monetary policy decisions. His remarks left the path for upcoming rate adjustments obscured, shifting the focus back to incoming economic data.