ISTANBUL

US stock exchanges closed with major losses Wednesday as the Federal Reserve chair presented an unclear path for interest rate cuts this year.

The Dow Jones Industrial Average fell 317 points, or 0.82%, to finish at 38,150. The S&P 500 dove 79 points, or 1.61%, to 4,845.

The tech-heavy Nasdaq, meanwhile, plummeted 345 points, or 2.23%, to 15,164.

The Fed on Wednesday kept its federal funds rate unchanged, as expected, in the 5.25%-5.5% target range – the highest level in 23 years.

Chair Jerome Powell, in his post-meeting press conference, said inflation is still too high, the ongoing progress to bring it down is not assured and the path forward remains uncertain.

"If we saw inflation being stickier or higher, (that) would argue for moving later," he said, adding that "if inflation were to surprise by moving back up, we would have to respond to that, and that would be a surprise at this point. But I have to tell you that’s why we keep our options open here and why we’re not rushing."

The VIX volatility index, also known as the fear index, jumped 8% to 14.37. The 10-year US Treasury yield shed 3.3% to 3.926%.

The dollar index increased 0.22% to 103.63, while the euro lost 0.28% to $1.0810 against the greenback.

Precious metals were in the red, with gold trimming 0.1% to $2,034 per ounce and silver decreasing 1.2% to $22.87.

Oil prices were down more than 2%, with global benchmark Brent crude losing 2.5% to $80.44 per barrel and US benchmark West Texas Intermediate crude falling 2.6% to $75.75.