(CNBC) -- The Dow Jones Industrial Average fell in volatile trading Wednesday, after Federal Reserve Chairman Jerome Powell suggested the central bank has plenty of room to raise interest rates before it would harm the economy.
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The blue-chip average fell 129.64 points, or 0.4%, to 34,168.09. The Dow was up more than 500 points at one point, but rolled over after the Fed’s update. The S&P 500 fell 0.2% to 4,349.93. The Nasdaq Composite finished little changed at 13,542.12, buoyed by Microsoft’s post-earnings gain.
Stocks came off their highs and Treasury yields surged after Powell said at a press conference there was “quite a bit of room” to raise interest rates before it would hurt the labor market. Powell also said prices could continue to run higher as “inflation risks are still to the upside.”