Wall Street's main indexes fell on Wednesday, with the Dow Jones Industrial Average down 819 points as oil prices spiked and chip stocks extended a four-session slide. Fed funds futures traders were pricing a nearly 70% chance that the Federal Reserve leaves rates unchanged later in the day.
Stocks fell on Wednesday as oil prices spiked ahead of the Federal Reserve's latest interest rate decision. The Dow Jones Industrial Average traded 819 points lower, or 1.6%, while the S&P 500 shed 0.8% and the Nasdaq Composite slid 1%.
Oil jumps after Trump's warning to Iran
Oil rose sharply after President Donald Trump said the U.S. will hit Iran hard in retaliation for an attempted surprise attack on American forces. West Texas Intermediate crude futures advanced 6.9% to trade at $89.88 a barrel.
U.S. Central Command said late Tuesday that Islamic Revolutionary Guard Corps forces launched multiple ballistic missiles in an attempted surprise attack on U.S. forces based in the Middle East. The missiles were successfully intercepted, Centcom said.
Fed decision hangs over the session
Investors also looked ahead to the Fed's interest rate decision and the subsequent press conference on Wednesday afternoon. Fed funds futures traders are pricing in a nearly 70% likelihood that the central bank holds rates steady at the current target range of 3.5% to 3.75%, according to CME's FedWatch tool.
Freedom Capital Markets chief market strategist Jay Woods tied the next move to the central bank: "Any Fed surprise could cause this sell off to accelerate".
Chip stocks extend their losing streak
Semiconductors fell again, with the iShares Semiconductor ETF last down more than 4%. Chip stocks are coming off four straight losing sessions and are down 10% week to date, amid growing anxiety over the return on artificial intelligence spending as well as fears of greater competition from China.
Micron Technology dipped 5%, while Advanced Micro Devices slipped more than 5% and shares of KLA dropped more than 8%.
Away from chips, Procter & Gamble fell more than 3% after the consumer goods company missed revenue expectations in its latest quarter. Ford Motor, however, jumped 5% after beating earnings expectations and lifting its 2026 forecast.
Source: CNBC
Trading involves risk.
Risk Disclaimer
