US stocks fall as Powell sees “no strong case” for rate cut

The S&P 500 fell 0.8 percent on Wednesday. Most other major markets were closed for holiday.

The Federal Reserve left its benchmark interest rate unchanged after its monetary policy meeting on Wednesday, noting a recent decline in inflation even as the economy continues to grow “at a solid rate”.

However, Powell said the slackening in price pressures appears to be “transient” and said he saw “no strong case” for expecting the central bank’s next move to be a rate cut.

US economic data on Wednesday were mixed.

ADP's employment report showed that the economy added 275,000 new jobs in April while Markit's manufacturing PMI rose to 52.6 in April from 52.4 in March.

However, the Institute for Supply Management's manufacturing index fell to 52.8 in April from 55.3 in March while another report showed that construction spending fell 0.9 percent in March.