Here's what happened to the stock market on Wednesday

Stocks don't seem dramatically overvalued: Bill Miller
Stocks don't seem dramatically overvalued: Bill Miller

Dow Jones Industrial Average drops 516 points

The Dow closed 516.81 points lower, or 2.17%, at 23,247.97. The S&P 500 dropped 1.75% to 2,820.00. The Nasdaq Composite fell 1.55% to close at 8,863.17. Downbeat remarks from the top-ranking Federal Reserve official and worries over market valuation sent stocks sharply lower on Wednesday.

Powell: More needed to support the economy

Fed Chairman Jerome Powell said that more needs to be done to support  the economy. "While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks," he said. Those comments raised concern over the state of the economy. Meanwhile, Appaloosa's David Tepper said he hasn't seen a market this overvalued since 1999.

Airlines fall again, banks slide

Airline stocks fell to fresh coronavirus-crisis lows on Wednesday. American closed 5.60% lower while United lost 9.01%. Delta fell 7.70%. Bank stocks also contributed to the losses. Citigroup, Bank of America and JPMorgan Chase all closed more than 3% lower.

What happens next?

Weekly jobless claims are set for release Thursday.

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