The Dow Jones and S&P 500 traditionally appreciate — literally — when the Federal Reserve cuts interest rates. Indeed, though the Fed operates autonomously, there is often political pressure from presidents hoping for bull markets to advocate for rate cuts.

Fed Chair Powell warned of a slowing economy and higher inflation but said the central bank isn't ready to cut rates just yet.

Federal Reserve Chairman Jerome Powell sent stocks lower when he commented about the impact of President Trump's tariffs and how it may affect inflation and a potential rate cut.