Stocks closed sharply lower on Wednesday after the Federal Reserve's latest interest rate decision. Though policymakers voted to keep rates unchanged at a range of 3.5% to 3.75%, three officials dissented in favor of a rate hike, signaling a surprisingly hawkish stance. The Dow Jones Industrial Average (DJI) snapped its three-day win streak with a 1,152-point loss, its largest daily drop since April 2025, while the S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) also landed firmly in the red.
Rising Treasury yields and a surge in oil prices added to the pressure after President Donald Trump vowed to "hit Iran hard" following a surprise attack by the Islamic Revolutionary Guard. The 30-year Treasury yield hit its highest level since 2007. After the close, investors focused on earnings from Microsoft (MSFT) and Meta Platforms (META).
Oil Surges Back Above $80
Oil prices moved sharply higher as Middle East tensions escalated. September-dated West Texas Intermediate (WTI) crude rose 6.6% to settle at $84.46 per barrel.
Gold prices were lower earlier in the day, but moved higher after the Fed's interest rate decision. August-dated gold futures were last seen up 0.8% at $4,069.70.
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