Dow Dives Over 450 Points Amid Fed Decision Uncertainty and Chip Selloff

US stocks opened lower on Wednesday as investors awaited the Federal Reserve's latest interest rate decision and monitored renewed geopolitical tensions in the Middle East. The Dow Jones Industrial Average fell by more than 450 points, with Procter & Gamble (PG) experiencing significant weakness after missing quarterly revenue expectations.

The S&P 500 was little changed, while the Nasdaq Composite slipped about 0.19%. Markets remained focused on whether the Federal Reserve would leave interest rates unchanged and on any signals from Chair Kevin Warsh regarding the path of monetary policy.

Chip stocks continued to struggle ahead of Big Tech earnings, with the iShares Semiconductor ETF down nearly 7% for the week after four consecutive losing sessions. South Korean chipmaker SK Hynix reported quarterly results that failed to meet elevated investor expectations, while US-listed shares of SK Hynix were up by 0.56%. Applied Materials declined more than 1.7%, and Sandisk slipped over 1.14%.

Investors are now awaiting quarterly earnings from Microsoft and Meta Platforms after Wednesday's closing bell, followed by Amazon and Apple later in the week. Their results are expected to provide fresh insight into AI investment plans and demand for semiconductor infrastructure. Despite the weakness in technology shares, Seagate Technology gained 5.6% after issuing quarterly guidance above market expectations.