S&P 500 suffers worst day in nearly 6 weeks after Fed's policy statements

U.S. stock indexes logged their worst losses in about a month, with declines picking up steam in the final minutes of trade, following the conclusion of the Federal Reserve's updated policy statement, which acknowledged lackluster inflation but a central bank unlikely to cut rates to address that. The Dow Jones Industrial Average ended off 163 points, or 0.6%, at 26,430, after putting in an intraday peak at 26,689, the S&P 500 index closed 0.8% lower to 2,924, after touching its intraday peak at 2,954.13, while the Nasdaq Composite Index declined 0.6% to 8,050. The decline for the Dow was its steepest since April 9, the S&P 500 booked its sharpest daily slide since March 22, while the Nasdaq recorded its first back-to-back losses since the March 22-25 period. The rate-setting Federal Open Market Committee indicated that economic activity slowed in the first three months of 2019, but acknowledged inflation sinking below its 2% target, while business and consumer spending was weaker than hoped for. Although, the central bank signaled that the economy was solid, it appeared to suggest that it wasn't inclined to raise interest rates or lower them in coming months. During a news conference featuring Fed Chairman Jerome Powell, the central bank boss said inflation was transient, suggesting that the Fed lowering borrowing costs to stimulate inflation wasn't likely.

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