On Thursday, the US stock market experienced a decline, following a rally on Wednesday inspired by positive remarks from Federal Reserve Chair Jerome Powell after the central bank maintained interest rates. The Nasdaq Composite (^IXIC) dropped by around 0.6%, the S&P 500 (^GSPC) fell by 0.4%, and the Dow Jones Industrial Average (^DJI) decreased by 0.2%. Throughout the trading session, these three major indexes fluctuated before eventually giving up their gains.

The decision by the Fed to keep interest rates steady was anticipated by Wall Street, but investors were encouraged by the news, holding on to expectations of two rate cuts in the year. Concerns had grown over the impact of President Trump's tariffs on the US economy. Powell, in a press conference, soothed investor worries by stating that the effects of tariffs on inflation are likely temporary, and the risk of a recession remains low.

Despite Powell's reassuring comments, the Fed revised its projections, indicating higher inflation at the end of the year while forecasting a significant drop in economic growth. These economic concerns have been influencing the market negatively over the past couple of months, leading to corrections in both the S&P 500 and the Nasdaq.

President Trump, previously uninvolved in Fed policy discussions, hinted at pressuring the central bank to cut rates in response to the impact of US tariffs on the economy.