Fed Holds Steady as Stocks Plummet Amid Inflation Concerns
US stocks plummeted on Wednesday after the Federal Reserve left interest rates unchanged at 3.5% to 3.75%, despite rising inflation above its 2% target.
The Dow Jones Industrial Average fell over 1,100 points, while the Nasdaq and S&P 500 each lost more than 1.5%. The sharp decline came after a brief recovery in morning trading following the Fed's announcement.
The renewed fighting in the Middle East and rising oil prices also contributed to investors' concerns. Brent crude oil surged above $91 a barrel, up from as low as $72 this month.
The technology sector was another area of concern, with heavy spending on artificial intelligence by major companies weighing on stocks. Additionally, President Donald Trump's new tariffs and a sell-off in chip stocks contributed to the market's downturn.