Dow down 250 points as stocks erase Powell-inspired bump

After briefly rallying to their highest levels of the session, U.S. stocks have sunk back into the red Tuesday afternoon in New York as gains inspired by Fed Chairman Jerome Powell’s latest commentary have faded. The Dow Jones Industrial Average
DJIA,
+0.39%
fell 250 points, or 0.8%, to 33,640, while the S&P 500
SPX,
+0.79%
fell 0.2%, and the Nasdaq Composite
COMP,
+1.16%
fell 0.5%. Earlier, the blue-chip gauge had risen more than 200 points as investors initially cheered what market strategists described as a dovish tone from Powell. During comments at the Economic Club of Washington D.C., the Fed chair struck a dovish tone has he demurred when asked about how Friday’s blockbuster jobs report impacted policymakers’ thinking, while reiterating that disinflation had begun.