Tech Stocks Drag Market Lower as Fed Keeps Rates Steady
The stock market took a hit on Wednesday as tech stocks continued to decline amid uncertainty about what the Federal Reserve will do to combat high inflation.
The Dow Jones Industrial Average plummeted 1,153 points, or 2.2%, while the Nasdaq composite slumped 1.7% and fell 9.8% below its record set last month.
The decline in tech stocks was led by Nvidia, which fell 3.6%, and KLA Corp., whose products help make semiconductors, lost 10.8% despite reporting stronger-than-forecast profit and revenue for the latest quarter.
The Federal Reserve kept its main interest rate steady on Wednesday, but three members of the policymaking committee wanted to raise rates. Fed Chairman Kevin Warsh hinted that the bond market may be doing some of the work to restrain inflation by pointing to how yields have climbed since the central bank's last meeting six weeks ago.