Stocks Ended Lower after Fed Lowered Rate-cut Hopes

U.S. stocks ended lower on Tuesday after Federal Reserve Chairman Jerome Powell said the central banks was still monitoring the economy for signs of weakness and would seek to avoid a knee-jerk reaction in terms of cutting benchmark interest rates. The Dow Jones Industrial Average fell 179.32 points, or 0.67%, to 26,548.22. The S&P 500 lost 27.97 points, or 0.95%, to 2,917.38. The Nasdaq Composite gave up 120.98 points, or 1.51%, to 7,884.72.

U.S. oil prices fell on Tuesday, posting a modest retreat after three consecutive session gains on the back of heightened tensions between the U.S. and Iran. August West Texas Intermediate crude fell 7 cents, or 0.1%, to settle at $57.83 a barrel. August Brent crude edged up by 19 cents, or 0.3%, to $65.05 a barrel.

Federal Reserve Chairman Jerome Powell said Tuesday afternoon that the Fed is “insulated” from short-term political pressure, warning that huge policy mistakes can happen when the Fed is influenced by the White House.