The S&P 500 relinquished its earlier gains and concluded the day in the red on Wednesday, following remarks from Federal Reserve Chair Jerome Powell indicating that the central bank is not prepared to lower interest rates at this time, as it evaluates the implications of President Donald Trump?s increased tariffs on inflation.

The broad market index experienced a decline of 0.12%, concluding the session at 6,362.90. The Dow Jones Industrial Average experienced a decline of 171.71 points, representing a decrease of 0.38%, and concluded the trading session at 44,461.28. The Nasdaq Composite experienced a modest increase of 0.15%, concluding the session at 21,129.67. At their session peaks, the S&P 500 recorded an increase of up to 0.4%, whereas the Dow experienced a rise of 0.2%.

Investors analyzed Powell?s remarks during a press conference for indications regarding the Fed?s forthcoming actions, particularly after it maintained its stance on interest rates following the July meeting. Powell indicated that the central bank has made no decisions regarding a possible policy adjustment in September.

Our obligation is to keep longer-term inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem, Powell stated. The impact of increased tariffs is becoming more evident in the pricing of certain goods; however, the broader implications for economic activity and inflation are yet to be determined.