Dow Crashes Over 1,100 Points as Fed Holds Interest Rates Steady

US stocks took a sharp downturn on Wednesday following the Federal Reserve's decision to keep interest rates unchanged. The Dow Jones Industrial Average plummeted over 1,100 points, while the Nasdaq and S&P 500 each lost more than 1.5% of their value.

The Fed voted 9-3 to maintain interest rates between 3.5% and 3.75%, despite inflation remaining above its 2% target. This move was met with mixed reactions from investors, who were also concerned about renewed fighting in the Middle East and rising oil prices.

Brent crude oil surged past $91 a barrel after a four-day pause in hostilities, while technology stocks suffered due to heavy spending on artificial intelligence by major companies. The sector's woes were further exacerbated by new tariffs announced earlier this month and a sell-off in chip stocks.