The head of the Fed's choice of words when describing elevated inflation should rightly worry Wall Street and investors.
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Then Kevin Warsh started talking. The new Federal Reserve chairman did little to ease investor concerns about the central bank’s fight with inflation, so the S&P 500 closed down 1.5%. The Dow Jones Industrial Average sank 2.2% The Nasdaq Composite fell 1.7%.
U.S. equity futures were little changed on Wednesday as investors digested Microsoft, Meta and Qualcomm earnings and the Federal Reserve’s decision.

<body><p>STORY: Wall Street ended sharply lower on Wednesday, with the Dow tumbling more than two percent, the S&P 500 shedding one-and-a-half percent and the Nasdaq falling one-and-three-quarters percent.</p><p>:: Archive</p><p>The Fed's widely expected decision to leave interest rates unchanged drew dissents from three of the 12 members of the central bank's policy-setting committee, who would have "preferred" a quarter-percentage-point hike at Wednesday's meeting.</p><p>Eric Diton is president and managing director of The Wealth Alliance.</p><p>"That's telling you the Fed here is not in agreement. Three dissenters is a lot. And it's clear that we are getting closer and closer to a rate hike. And the markets are handicapping that. So, I think going forward I would expect a rate hike probably in September, certainly by December. I think that’s where we are heading.”</p><p>Meanwhile, investors continued to worry about Big Tech companies funneling billions of dollars into AI at the expense of free cash flow.</p><p>Case in point: shares of Meta fell more than 9% in extended trading after the social media company hiked its forecast for 2026 capital expenditure.</p><p>But shares of another Magnificent 7 tech giant climbed in extending trading. Microsoft rose about 2% after topping Wall Street estimates for quarterly cloud revenue growth, a sign its massive spending on AI infrastructure was paying off.</p><p>:: Microsoft</p><p>:: Archive</p><p>AI-related chipmakers added to recent losses after a sixfold jump in SK Hynix's quarterly profit fell short of lofty investor expectations. </p></body>
(Updates with index/price moves and Federal Reserve/geopolitical news from the first paragraph.)
Stocks fell sharply after the Federal Reserve held rates steady, while investors worried that rate hikes were coming later this year as the war in Iran escalated.
US equity indexes fell Wednesday as crude oil prices jumped after Iran's surprise missile attack, wh
After a brief relief rally, stock market selling accelerated again heading into the close. The Dow Jones Industrial Average sank 1,000 points, or 1.9%. The S&P 500 fell 1%. The Nasdaq dropped 0.9%. The S&P and Nasdaq both were on pace to mark intraday comebacks but lost steam as traders digested the latest updates from Federal Reserve Chairman Kevin Warsh.
The S&P 500 and Nasdaq Composite were struggling to hold onto gains as after Fed Chairman Kevin Warsh took questions from reporters. The S&P 500 was back down 0.2% after briefly popping during Warsh’s presser. The Nasdaq was up just 0.1%.
The Nasdaq Composite is mounting its biggest comeback on a Federal Reserve decision day in more than four years. The tech-heavy index was up 0.4% as Fed Chairman Kevin Warsh took questions from reporters. It was down nearly 1.6% at its low today; if it closes higher, it would mark its biggest reversal from an intraday low to positive territory on a Fed decision day since May 4, 2022, according to Dow Jones Market Data.
As Federal Reserve Chairman Kevin Warsh began his press conference, stocks had erased most of their post-decision pop. The Dow Jones Industrial Average was down 775 points, or 1.5%. The S&P 500 was down 0.
With an hour to go until the Federal Reserve’s big rate-cut decision, the stock market is already selling off. The Dow Jones Industrial Average was down 823 points, or 1.6%. The Nasdaq Composite dropped 1%.
Chip stocks extended a losing streak while traders await Fed Chair Kevin Warsh's rate announcement Wednesday afternoon
During an interview with Fox News on Wednesday, Trump warned that the United States will be “hitting Iran hard” following the attack on U.S. bases in Jordan.
The latest oil spike was sending the Dow tumbling, but the Federal Reserve’s interest-rate decision and a gauntlet of earnings loom. The Dow Jones Industrial Average fell 700 points, or 1.3%. The S&P 500 was down 0.
West Texas Intermediate crude jumped nearly 7% after Iran launched missiles at U.S. forces, complicating the Fed's rate calculus
July 29 (Reuters) - Wall Street's main stock indexes opened lower on Wednesday as investors awaited the Federal Reserve's monetary policy verdict against a backdrop of simmering Middle East tensions,
Stock Market Today: The Dow Jones index dropped Wednesday ahead of the Fed decision and Fed Chair Warsh's comments. SK Hynix sold off.
US market liveblog: stocks set for mixed open ahead of Fed decision US stocks are set for a mixed open on Wednesday as investors look ahead to the Federal Reserve's latest interest-rate decision, while renewed tensions in the Middle East and continued pressure on semiconductor stocks cloud...
West Texas Intermediate crude surged as the Federal Reserve prepared to announce its interest rate decision Wednesday afternoon
Wall Street futures were mostly higher pre-bell Wednesday as the global tech sector sell-off paused,