US stocks fell in the trading session on Wednesday after Federal Reserve (Fed) Chairman Jerome Powell reiterated his stance to continue raising interest rates.
All three major indexes ended lower, with the Dow Jones Industrials closing at 33,951.53 after losing 0.3%, while the S&P 500 fell 0.52% to 4,365.68 and the Nasdaq plunged 1.35% to 14,867.45.
In testimony before the US House Financial Services Committee, Powell said the central bank is very committed to lowering inflation to the 2% target and therefore it is appropriate for interest rates to continue to be raised.
Among the S&P 500's 11 major sectors, energy stocks rebounded from their biggest daily drop in a month, while technology and communications services fell sharply.
While stocks with high market value such as Tesla, Microsoft and Nvidia were among the most affected dragging the index lower.
Tesla fell sharply with a loss of 5.5%, while Microsoft fell 1.3% and Nvidia lost 1.7%.
FedEx continued its decline of 2.5% after posting disappointing quarterly earnings.
Crypto firms, including Coinbase, Riot Platforms, Marathon Digital and Bit Digital, meanwhile, gained between 1.8% and 4.2%, after Bitcoin successfully crossed the $30,000 mark.
Analysts see the US stock market as overbought and may experience bearish sentiment in the near term as investors look for further catalysts to sustain the rally.
