US stocks had their worst day since December, with Powell downplaying expectations of a rate cut in September.

US stocks fell in the afternoon, as Wall Street had originally hoped the Federal Reserve would signal an imminent rate cut on Wednesday, but this expectation was basically dashed. Federal Reserve Chairman Powell stated that a decision has not yet been made on whether to cut rates in September, breaking the initially calm reaction of investors. He said that the US labor market "looks robust" and the inflation rate remains above target. Traders interpreted these remarks as not favorable for an immediate rate cut. US stocks erased gains, with the S&P 500 index falling by 0.1%. Although the declines in both the stock and bond markets appear relatively mild, this marks the worst performance on a Federal Reserve decision day since December.