Dow sheds 400 points, stocks drop after Fed’s Powell warns of more pain from inflation fight

U.S. stocks tumbled Friday to session lows after Federal Reserve Chairman Jerome Powell delivered blunt remarks on the pain the U.S. inflation fight likely will cause households and businesses at the annual Jackson Hole, Wyoming economic summit. The Dow Jones Industrial Average
DJIA,
-1.62%
was down 406 points, or 1.2%, trading near 32,880, while the S&P 500
SPX,
-2.01%
was off 1.6% and the Nasdaq Composite Index
COMP,
-2.54%
was off 1.9%. Powell said Friday that there will “very likely be some softening of labor market conditions,” in his speech. “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” he said. The 10-year Treasury note rose to 3.05% and the ICE US Dollar Dollar index edged down 0.3% to about 108 against a basket of rival currencies.