Dow Jones Industrial Average falls by more than 1,000 points after Jerome Powell's tough talk on inflation
The U.S. Federal Reserve chair said that restoring price stability will take some time
It was a bloodbath on Wall Street today, with the bellwether Dow Jones Industrial Average shedding more than 1,000 points.
There are 30 large-cap stocks in this index, with the worst performer, 3M Co., falling by 9.65 percent.
Other big losers were Salesforce (-4.97 percent), Intel (-4.93 percent), and Nike (-4.35 percent).
None of the DJIA stocks posted a gain—the best performer was Chevron, which lost 0.73 percent.
It was a similar story with the NASDAQ Composite Index, which fell 3.94 percent compared to the 3.03 percent decline in the DJIA.
The carnage was triggered by a speech by U.S. Federal Reserve chair Jerome Powell in Jackson Hole, Wyoming.
"Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance," Powell said. "Reducing inflation is likely to require a sustained period of below-trend growth.
"Moreover, there will very likely be some softening of labor market conditions," he continued. "While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain."
A written version of Powell's speech is available here.