Wall Street Tumbles as Fed Holds Rates Steady Amid Oil Price Surge

The US stock market took a hit on Wednesday as investors digested the Federal Reserve's decision to keep interest rates steady, despite ongoing inflation concerns.

The Dow Jones Industrial Average plummeted 2.2% or over 600 points, while the tech-heavy Nasdaq Composite index declined 1.7%, weighed down by semiconductor sell-offs and rising capital expenditure jitters in the AI landscape.

The Fed's decision highlighted internal divisions among central bank leaders, with three committee members dissenting from the majority in favor of a rate hike to combat persistent price pressures.

The market's anxiety was further exacerbated by a sharp spike in global crude oil prices, which surged 7.3% to settle above $88 per barrel due to renewed fighting with Iran and concerns over supply chain bottlenecks.