Wall Street reverses course on Powell remarks, S&P 500 erases more than 1.5%

• FOMC Chairman Powell's remarks weigh on stock markets.
• Powell says the rate cut decision has an insurance aspect to it.
• All the major S&P 500 sectors slump into the negative territory.

Major equity indexes in the US came under heavy selling pressure in the last hour as Chairman Powell's remarks following the Federal Open Market Committee's decision to cut the policy rate by 25 basis points don't seem to be satisfying investors who were expecting to see a more dovish outlook. 

As of writing, the S&P 500, which lost as much as 1.6%, was down 1.1% on the day while the Dow Jones Industrial Average and the Nasdaq composite were erasing 1.1% and 1.25%. 

During the press conference, Powell said that today's rate cut was not seen as the beginning of a lengthy cutting cycle and explained that the rate cut has an insurance and a risk management aspect to it. 

Among the 11-major S&P 500 sectors, which are all in the red at the moment, the Consumer Staples and the Materials are leading the loser by erasing 2% and 1.5%, respectively.