Stocks on Wall Street traded lower after Fed Chairman Powell reiterated the central bank's commitment in bringing down inflation sooner than later.

In an eight minute short speech, Chairman Powell delivered a forceful reminder of the need to fight inflation now despite the pain it is likely to inflict on the economy.

Chairman Powell forcefully reiterated the central bank's commitment in aggressively fighting the four-decade high inflation before it entrenched and spread to a wider economy.

Stock markets turned sharply lower after Powell's comments and bond yields jumped above 3%.

The S&P 500 index declined 1.5% to 4,137.15 and the Nasdaq Composite fell 1.7% to 12,414.95.

Futures of crude oil decreased 12 cents to $92.40 a barrel but natural gas rose 12 cents to $9.46 a thermal unit.

The yield on 10-year U.S. Treasury notes rose to 3.056% and on 2-year notes gained to 3.415%.

Affirm Holdings Inc plunged 21.4% to $24.55 after the installment plan lending services provider said revenues in fiscal fourth quarter ending in June soared 39% to $364.1 million. 

Net loss in the quarter widened to $186.4 million from $123.4 million a year ago or diluted loss per share surged to 85 cents from 46 cents a year ago.  

The company said gross merchandise value rose to $4.4 billion from $2.5 billion a year ago in the quarter and estimated between $4.2 billion and $4.4 billion in the fiscal first quarter 2023.   

The stock plunged after the company estimated fiscal first quarter revenues shy of investor's expectations. 

Revenues in fiscal year first quarter 2023 to range between $345 million and $365 million and in the full-year 2023 between $1.625 billion and $1.725 billion. 

Electronic Arts Inc jumped 6.1% to $135.11 after a report in Swedish media suggested that Amazon.com is likely to make an offer to acquire the game publisher as early as today.

Amazon.com and Electronic Arts spokespersons declined to comment. 

Farfetch Ltd soared 25.1% to $11.94 after the online luxury fashion retailer reported stronger-than-anticipated quarterly results and smaller loss.

The luxury fashion platform operator said revenues in the second quarter increased to $499.4 million from $439.4 million a year ago. 

Gross profit margin increased to 46.2% from 44% a year ago. 

Operating loss increased to $167.6 million from $150.3 million a year ago and diluted loss per share rose to 50 cents from 31 cents a year ago. 

Gross merchandise value increased 1.3% in the second quarter to $1.20 billion from $1.01 billion a year ago. 

Gap Inc, after rising as much as 6%, declined 1.20% to 9.84 after the apparel retailer reported rising sales at its Banana Republic chain. 

Second quarter revenues fell 8% to $3.86 billion and comparable sales across all divisions declined 10%. 

Merchandise margin declined 850 basis points on inventories impairment charges and incremental air freight costs. 

Gap Inc swung to a net loss of $49 million from a profit of $258 million and swung to a diluted loss per share of 13 cents from a diluted profit of 67 cents a year ago.  

Gap also withdrew its 2022 outlook citing macroeconomic challenges, company management changed and CEO transition. 

The retailer also added that growth in inventories in the third quarter "to moderate substantially" and the company is targeting negative inventories by the end of last year "as a result of its inventory actions, reduction of receipts, and anniversary of higher in-transit levels last year."

Micro Focus International soared 93% to 519.0 pence in London trading after the Canada-based OpenText agreed to acquire the enterprise software maker for $6 billion including debt.

OpenText declined 12.7% to $32.73. 

Ulta Beauty Inc fell 1.3% to $413.88 after the company's latest quarterly results exceeded expectations and also issued a positive outlook for the year.

Fiscal year second quarter revenues increased to $2.3 billion from $1.97 billion a year ago. 

Same store sales growth plunged to 14.4% from 56.3% a year ago as stimulus and pandemic relief payment lapped. 

Gross profit as a percentage of sales was 40.4% compared to 40.6% a year ago. 

Net income increased 17.8% to $295.7 million compared to $250.9 million and diluted earnings rose to $5.70 from $4.56 a year ago. 

The cosmetic retailer and beauty salon lifted annual sales outlook to between $9.65 billion and $9.75 billion from the previous estimate between $9.35 billion and $9.55 billion.  

Workday Inc increased 2.7% to $166.83 after the human resource software company said fiscal year second quarter total revenues increased 21.9% to $1.54 billion. 

The company swung to a net loss of $64.2 million from a profit of $105.7 million a year ago. 

Diluted loss per share in the quarter was 25 cents compared to a profit of 43 cents a year ago.

In the second quarter, operating cash flow fell sharply to $114.4 million from $198.5 million a year ago.