Stocks Mixed as Treasury Yields Retreat on Powell Comments

Dow rises, S&P and Nasdaq fall as investors weigh Fed chair's remarks on inflation

Mar. 30, 2026 at 6:35pm

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U.S. stock indexes had a mixed performance on Thursday, with the Dow Jones Industrial Average rising 0.26% while the S&P 500 fell 0.29% and the Nasdaq 100 declined 0.67%. The moves came as Treasury yields retreated following comments from Federal Reserve Chair Jerome Powell that the central bank's tools for addressing supply-side shocks are limited.

Why it matters

The divergent market moves highlight the uncertainty investors are facing as the Fed navigates high inflation and the potential impact of the ongoing conflict in Iran. Powell's remarks suggest the central bank may be more cautious about aggressively raising interest rates, which could ease pressure on stocks in the near term but also risks allowing inflation to become more entrenched.

The details

The Dallas Fed manufacturing survey for March came in weaker than expected, falling to -0.2 from -0.4 the prior month. Meanwhile, the war in Iran continues to roil global energy markets, with crude oil prices rising more than 2% on Thursday to a three-week high. The closure of the Strait of Hormuz has choked off oil and gas flows, forcing Gulf producers to cut output. Goldman Sachs warned that crude prices could exceed the 2008 record high of close to $150 per barrel if the disruptions persist.

  • The FOMC's next policy meeting is scheduled for April 28-29.
  • The ECB's next policy meeting is set for April 30.

The players

Jerome Powell

Chair of the Federal Reserve

Goldman Sachs

A major global investment bank

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What they’re saying

“While the central bank is tracking the recent surge in energy costs, its tools for addressing such supply-side shocks remain restricted.”

— Jerome Powell, Federal Reserve Chair

“Crude prices could exceed the 2008 record high of close to $150 a barrel if flows through the Strait of Hormuz remain depressed through March.”

— Goldman Sachs

What’s next

The markets will be closely watching the FOMC's policy decision on April 28-29 and the ECB's meeting on April 30 for clues on the path of interest rates going forward.

The takeaway

The mixed market performance and Powell's cautious tone on the Fed's ability to address supply-side inflation pressures suggest investors are grappling with the complex economic landscape, including the impact of the ongoing conflict in Iran and the central bank's policy response.