Stock market today: Dow, S&P 500, Nasdaq futures steady in countdown to Fed decision, AI earnings test - Yahoo Finance

What the report says

Yahoo Finance reported that U.S. stocks sold off sharply Wednesday after the Federal Reserve left interest rates unchanged while three members of the Federal Open Market Committee dissented in favor of an increase. The Dow Jones Industrial Average fell more than 1,100 points, or 2.2%, while the S&P 500 lost 1.5% and the Nasdaq Composite declined about 1.7%.

The report said long-dated Treasury yields climbed after the Fed decision, adding pressure to equities. The central bank’s move came as inflation remained above its 2% target, making the split vote a closely watched signal for investors trying to gauge whether policymakers may keep rates higher for longer or consider renewed tightening.

Technology shares were another weak spot, especially chip stocks. Yahoo Finance said investors reacted negatively after SK Hynix posted a large second-quarter profit that still missed Wall Street expectations, raising fresh questions about the durability of the artificial intelligence trade. Microsoft and Meta were scheduled to report quarterly results after the closing bell, with their updates seen as important tests for major tech and AI-linked stocks following recent concern over Alphabet’s capital spending plans.

Yahoo Finance also cited renewed Middle East tensions as a factor in the market decline. It reported that U.S. Central Command described an Iranian action Tuesday as an “attempted surprise attack,” marking a reengagement of fighting between the U.S. and Iran after a pause in hostilities. Oil prices rose sharply, with Brent crude gaining more than 7% and trading above $90 a barrel. Additional earnings from Starbucks, Chipotle, Qualcomm and Arm were also expected after the market close.