Wall Street resumes its decline as markets assess corporate earnings

US stock indices declined on Wednesday as markets assess corporate earnings and Fed Chair Jerome Powell’s latest policy statements.

Fed Chair Jerome Powell said in a symposium earlier this week that inflation has stiffened and held its place during the first quarter, raising doubts about the prospects of interest rate cuts in 2024.

Powell added that it’s clear that recent inflation data didn’t give the Fed enough confidence that inflation is heading towards the target, and it could take longer than expected.

He said recent data showed strong economic growth and labor momentum, but little progress in bringing inflation towards 2%. 

Separately, the International Monetary Fund raised its global growth forecast by 0.1% to 3.2%, while expecting the US economy to grow by 2.7% this year. 

The IMF expects the US to register an annual growth rate of 2.7%, up from 0.6% in latest forecasts. 

On trading, Dow Jones fell 0.3%, or 117 points as of 16:19 GMT to 37,681, while the S&P 500 fell 0.6%, or 29 points to 5,022, as NASDAQ declined 0.9%, or 141 points to 15,724.