Wall Street Tanks After Fed Holds Interest Rates Steady

The US stock market closed sharply lower on Wednesday after the Federal Reserve held interest rates steady at 3.5 to 3.75 percent.

The decision, widely expected by investors, drew dissents from three members of the policy-setting Federal Open Market Committee who preferred a quarter-percentage-point hike at this meeting.

The benchmark S&P 500 declined 1.52 percent to end the session at 7,316.15 points, while the tech-heavy Nasdaq Composite index was down about 9 percent from its June record high.

Average earnings forecasts for the S&P 500 are for a 40 percent jump in the second quarter compared to last year, with AI-related stocks accounting for much of that growth.