Nasdaq edges up, S&P 500, Dow decline slightly; more Fed rate hikes in focus

The Nasdaq closed slightly higher on Wednesday, supported by megacap stocks, while the S&P 500 and Dow closed lower after Federal Reserve Chair Jerome Powell signaled more rate hikes. Powell stated that he did not see inflation falling to the central bank’s target rate “this year or next year.” Despite Powell’s comments, investors remained confident due to signs of strength in the economy, with the labor market remaining resilient. The Dow fell 0.22%, the S&P 500 lost 0.04%, and the Nasdaq added 0.27%. Traders now see a 79.4% chance of a rate hike in July.