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Stocks fell on Wednesday, as oil prices spiked ahead of the Federal Reserve’s latest interest rate decision.
The Dow Jones Industrials fell hard, losing 895.11 points, or 1.7%, to 51,852.25.
The S&P 500 dipped 78.75 points to 7,350.03
The NASDAQ Composite flopped 347.56 points, or 1.4% to 24,527.87.
Oil prices extended their gains after President Donald Trump told a Fox News reporter that the U.S. will be hitting Iran “hard” in response to the surprise attacks. West Texas Intermediate crude futures advanced 6.9% to trade at $89.88 a barrel.
This comes after U.S. Central Command said in a social media post late Tuesday that Islamic Revolutionary Guard Corps forces launched “multiple ballistic missiles in an attempted surprise attack on U.S. forces based in the Middle East.” The missiles were successfully intercepted, Centcom said.
Investors are also looking ahead to the Fed’s policy decision and subsequent press conference with Chairman Kevin Warsh on Wednesday afternoon. Fed funds futures traders are pricing in a nearly 70% likelihood that the central bank holds rates steady at the current targe range of 3.5% to 3.75%.
Chip stocks are coming off four straight losing sessions, down 9% week to date, amid growing anxiety over the return on massive artificial intelligence spending, as well as fears of greater competition from China.
Micron Technology dipped 5%, while Advanced Micro Devices slipped more than 5%. Shares of KLA dropped more than 8%.
Shares of Procter & Gamble fell more than 3%, after the consumer goods company missed revenue expectations in its latest quarter. Ford Motor shares jumped 5% after the automaker beat earnings expectations and lifted its 2026 forecast.
Prices for the 10-year Treasury retreated, raising yields to 4.66% from Tuesday’s 4.60%. Treasury prices and yields move in opposite directions.
Oil prices recovered $5.85 to $85.11 U.S. a barrel.
Gold prices declined $32.00 to $4,006.70 U.S. an ounce.
