Fed's Decision Sparks US Stock Rout: Dow Plummets Over 1,100 Points
US stocks saw a sharp decline on Wednesday after the Federal Reserve's decision to keep interest rates unchanged at 3.5% to 3.75%. 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's vote was a close one, with nine members deciding to leave rates unchanged and three voting in favor of a rate cut. Inflation remains above the 2% target, which may have influenced the decision.
Renewed fighting in the Middle East pushed Brent crude oil prices above $91 a barrel, while investors also took notice of heavy spending on artificial intelligence by major technology companies and new tariffs announced by President Donald Trump earlier this month. The chip sector saw a significant sell-off, adding to the market's woes.