Dow Jones lone gainer after Powell's statements on interest rates

Most US stock indices declined on May 1, following statements by Federal Reserve Chairman Jerome Powell on the possibility of interest rates remaining at their current levels for a longer period than previously expected, but he ruled out another hike.

Dow Jones Industrial Average edged up 0.25%, or 87 points, to 37,903 points, after recording the worst monthly performance in April since September 2022.

On the other hand, the S&P 500 index fell by 0.35%, or 17 points, to 5,018 points, and the Nasdaq Composite index retreated by the same percentage or by 52 points to 15,605 points.

The session was very volatile, as the Dow, at one point, surged 530 points, while S&P 500 and Nasdaq by about 1.2% and 1.7%, respectively, supported by Powell’s statements before these gains faded.

In Europe, most markets were closed for Labor Day. British FTSE index fell by 0.30% to close at 8,121 points.

In Japan, Nikkei index dropped 0.35%, or the equivalent of 131 points, to 38,274 points, and the broader TOPIX index retreated by 0.50% to 2,729 points.

Amid commodities, Brent crude oil for July delivery fell 3.3%, or $2.89, to close at $83.44 per barrel, recording the lowest close since March 13.

WTI crude futures for June delivery dropped 3.6%, or $2.93, to $79 per barrel, recording the lowest level since March 13 as well.

Futures prices for gold for June delivery rose by 0.4%, or $8.1, to $2,311 per ounce upon settlement.

During its meeting, which started Tuesday and ended wednesday, the Federal Reserve held interest rates unchanged at the 5.25% and 5.50% range, for the sixth meeting in a row, indicating no progress in containing inflation.