Fed Holds Rates Steady Amid Market Turmoil

US stocks experienced a sharp decline on Wednesday following the Federal Reserve's decision to leave interest rates unchanged at 3.5% to 3.75%. The Dow Jones Industrial Average fell over 1,100 points, while the Nasdaq and S&P 500 lost more than 1.5% each.

The Fed's announcement came as investors weighed various market factors, including renewed fighting in the Middle East and rising oil prices. Brent crude oil prices surged above $91 a barrel after a four-day pause in hostilities.

Additionally, investors were concerned about heavy spending on artificial intelligence by major technology companies and new tariffs announced by President Donald Trump earlier this month. The chip sector also experienced a sell-off.