U.S. stocks ended lower on Wednesday as investors attempted to digest comments being made by Federal Reserve Chairman Jerome Powell about the economic outlook in the aftermath of the COVID-19 pandemic. Powell said on Wednesday that the U.S. economic outlook was "both highly uncertain and subject to significant downside risks," speaking Wednesday morning in a webcast hosted by the Peterson Institute for International Economics. The Dow Jones Industrial Average finished down 516 points, or 2.2%, at 23,247 but off its intraday nadir at 23,067, the S&P 500 index ended the session 1.8% lower at 2,820, while the Nasdaq Composite Index wrapped up off 1.6% at 8,863. All the closing levels are on a preliminary basis. Powell said further fiscal support would be expensive but worth it if it helped bring about a stronger recovery. The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II,' Powell said. In economic news, the April producer-price index plunged by 1.3%. Economists surveyed by MarketWatch, on average, forecast the index to fall 0.5%.In corporate news, shares of Tesla Inc. (TSLA) was down 2.3% after a news report late Tuesday said the electric-vehicle maker would fully reopen its battery "gigafactory" in Nevada, after Tesla reopened its auto factory in Fremont, California., on Monday in defiance of county regulations.
-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 13, 2020 16:10 ET (20:10 GMT)
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