U.S. stocks closed lower on Wednesday as Federal Reserve Chair Jerome Powell indicated a higher threshold for rate cuts, adding pressure to the markets. The Dow Jones Industrial Average fell 1.6%, the S&P 500 dropped 1.4% to its lowest level since November, and the Nasdaq Composite also declined by 1.4%. Despite the overall market downturn, the oil and gas sector saw significant gains, with Brent crude rising nearly 7% to surpass $110 per barrel. The Federal Open Market Committee (FOMC) maintained the interest rate range at 3.5%-3.75%, with discussions of potential rate hikes resurfacing. Inflation pressures remain due to tariffs and energy costs, with significant relief not expected until mid-year. Powell emphasized his commitment to maintaining policy continuity during ongoing investigations, stating he will not step down if necessary.