Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (flat), and DJIA (-0.9%) are at their lows for the day as the market digests commentary from Fed Chair Kevin Warsh at the press conference portion of today's FOMC meeting.

While stocks moved very little in reaction to the FOMC's decision to raise rates for the first time since July 2023, the market turned lower amid Mr. Warsh's commentary on inflation. Mr. Warsh said the "plain fact is that inflation is too high, and has been for too long," adding that this summer's inflation readings have not convinced him that underlying trends have meaningfully improved. He pointed to continued price increases above 3.0% across too many categories on both six- and 12-month bases, while also reiterating that commodity prices bear watching following recent increases in several key inputs.

The remarks have reinforced the view that today's rate hike may not be an isolated move, with investors focused on the possibility that persistent inflation pressures could require additional tightening in the months ahead.

Only the information technology (+0.1%) and health care (+0.2%) sectors remain in positive territory, though the PHLX Semiconductor Index (+0.2%) has once again ceded nearly all of its early gain.

Meanwhile, the financials sector (-1.8%) has continued to move sharply lower.