US stocks close lower as Powell’s warnings weigh

US stocks fell at the close of trading on Tuesday, after Federal Reserve Chair Jerome Powell warned of mounting risks to monetary policy, along with inflated prices of risky assets.

The Dow Jones Industrial Average slipped 0.19%, or 88 points, to 46,292 after touching a record high of 46,714 earlier in the session.

The S&P 500 lost 0.55%, or 36 points, to 6,656, snapping a three-day winning streak, while the Nasdaq Composite dropped 0.95%, or 215 points, to 22,573.

Wall Street faced further pressure from declines in leading artificial intelligence-linked stocks, with Nvidia down 2.82% at $178.43, Oracle sliding 4.36% to $313.83, and Amazon retreating 3% to $220.71.

Europe’s Stoxx 600 rose 0.30% to 554 points, lifted by a 2.1% rally in luxury goods shares.

Germany’s DAX gained 0.35% to 23,611, and France’s CAC 40 advanced 0.55% to 7,872, while London’s FTSE 100 was steady at 9,223.

Japanese markets were closed for the Autumnal Equinox holiday and will reopen Wednesday.

Brent crude futures for November delivery rose 1.6%, or $1.06, to settle at $67.63 a barrel.

US WTI crude futures for November delivery gained 1.8%, or $1.13, closing at $63.41 a barrel.

As for gold, December futures climbed 1%, or $40.6, to $3,815.70 an ounce, marking a new record close.

Powell, speaking at the Greater Providence Chamber of Commerce in Rhode Island, warned that the Federal Reserve faces dual risks from rising inflation and a weak labor market. He also flagged elevated asset and equity prices, though not at levels that pose a major threat to financial stability.