US Stocks Plummet as Fed Leaves Interest Rates Unchanged

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 suffered a massive loss of over 1,100 points, while the Nasdaq and S&P 500 each dropped more than 1.5%. Stocks briefly recovered some losses after the Fed's announcement before plummeting again in the final hour of trading.

Investors were also spooked by renewed fighting in the Middle East, which pushed Brent crude oil prices above $91 a barrel, up from as low as $72 this month. The technology sector continued to weigh on investors' minds due to heavy spending on artificial intelligence and new tariffs announced earlier this month.