Uncertainty about Fed policy, the war in Ukraine and prolonged supply chain problems stemming from COVID-19 lockdowns in China have hammered stocks, with the benchmark S&P 500 index (.SPX) falling almost 14% year-to-date. The consumer staples (.SPLRCS) sector lost 1.3% while materials (.SPLRCM) and real estate (.SPLRCR) also closed down more than 1%. The biggest laggards were financials (.SPSY), down 1.7%, and healthcare (.SPXHC), which was the biggest drag on the S&P 500, finishing down 1.4%.

The Dow Jones Industrial Average (.DJI) fell 176.89 points, or 0.54%, to 32,813.23, the S&P 500 (.SPX) lost 30.92 points, or 0.75%, to 4,101.23 and the Nasdaq Composite (.IXIC) dropped 86.93 points, or 0.72%, to 11,994.46.ДЄmong the S&P's 11 major industry sectors energy (.SPNY) was the sole gainer, finishing up 1.8% as oil prices rose.

economy akin to an 'hurricane' down the road and urged the Fed to take forceful measures to avoid tipping the world's biggest economy into a recession. Jamie Dimon, chief executive of JPMorgan Chase & Co (JPM.N), described the challenges facing the U.S. This was in line with comments from Fed Governor Christopher Waller on Monday. 'There wasn't any information to be found in today's releases that's likely to lead the Federal Reserve to become any less aggressive or to tone down its hawkishness in its rate hike campaign,' said Mark Luschini, chief investment strategist, Janney Montgomery Scott.ДЄlso on Wednesday, San Francisco Fed President Mary Daly said she sees half-point interest rate hikes in the next couple of meetings as the central bank battles high inflation, lifting rates to 2.5% as quickly as possible. Investors have been watching economic data closely for clues as to what it might mean for interest rates. 'Unless and until we get the sustained move lower in inflation, we can't put that notion of a pause on the table,' said Mona Mahajan, senior investment strategist at Edward Jones, who will closely monitor the May jobs report due out Friday and inflation readings due next week.

read moreД«ut strategists said they expect the market to trade roughly sideways until inflation slows to the extent that investors could realistically bet on a pause in rate hikes. regions expanding at a modest or moderate pace from April through late May with signs the Fed's efforts to cool demand were being felt. And a Fed report showed the economy in most U.S. Along with the data, investors were monitoring public comments from several Fed officials on Wednesday.

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