U.S. stocks closed sharply lower Wednesday after the Federal Reserve left interest rates unchanged and investors weighed renewed fighting in the Middle East, rising oil prices and continued concerns about the technology sector.
The Dow Jones Industrial Average fell more than 1,100 points, while the Nasdaq and S&P 500 each lost more than 1.5%. Stocks briefly recovered some of their morning losses after the Fed’s announcement before turning sharply lower in the final hour of trading.
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The Federal Reserve voted 9-3 to leave interest rates unchanged at 3.5% to 3.75% as inflation remains above its 2% target.
Meanwhile, renewed fighting in the Middle East after a four-day pause pushed Brent crude oil above $91 a barrel. It had been as low as $72 this month.
Investors were also concerned about heavy spending on artificial intelligence by major technology companies, new tariffs announced by President Donald Trump earlier this month and a sell-off in chip stocks.
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