US Stocks Resume Slide

US stock indices closed lower on Wednesday as investors following the Federal Reserve's policy decision and another selloff in chipmakers ahead of major tech earnings. The S&P 500 fell 1.5%, the Nasdaq 100 lost 2.1%, and the Dow shed 1,153 points. Microsoft shed 0.7% while Meta fell 1.3% ahead of their earnings reports after the bell, which investors are watching for signals on AI infrastructure spending. Concerns that AI-related capital spending has become excessive continued to pressure semiconductor stocks after disappointing results from SK Hynix. Nvidia fell 3.5%, Micron lost 9.9%, AMD dropped 5.5%, and Applied Materials slid 8.4%. The Fed left interest rates unchanged, as expected, though three FOMC members dissented in favor of a rate hike. Meanwhile, rising oil prices following renewed US-Iran strikes added to inflation concerns, pressuring the Dow. Visa gained 0.6% after reporting stronger-than-expected quarterly revenue.

US stocks held most of their losses on Wednesday on further fragility for chip producers ahead of major tech earnings, while the Federal Reserve held rates unchanged. The S&P 500 and the Dow were slightly lower, while the Dow fell nearly 700 points. Microsoft and Meta were muted ahead of their earnings reports after the bell, the latest signal for AI infrastructure spending. Concerns that AI capital expenditure is being overdone recently pressured Magnificent 7 stocks and triggered a selloff for chip producers that trimmed their surge late last quarter. Micron, Applied Materials, and Sandisk sank between 2% and 5% amid the pessimistic results by SK Hynix. Meanwhile, the Fed held rates unchanged in the least certain meeting in the last 15 years, featuring three dissents for a hike. The Dow was pressured by a flare-up in oil prices following fresh strikes between Iran and the US, adding to pro-inflationary risks. Visa rebounded and gained 1% after posting growth in revenue last quarter.

US stocks extended losses on Wednesday amid further fragility for chip producers ahead of major tech earnings and the Federal Reserve rate decision. The S&P 500 fell 0.8% and the Nasdaq 100 fell 1%, while the Dow lost 800 points. Microsoft and Meta fell 0.5% ahead of their earnings reports after the bell, the latest bellwether for AI infrastructure spending. Concerns that AI capital expenditure is being overdone recently pressured magnificent seven stocks and triggered a selloff for chip producers that trimmed their surge late last quarter. Micron, Applied Materials, and Sandisk sank between 4% and 8% amid the pessimistic results by SK Hynix. Meanwhile, the Fed is expected to hold rates unchanged, although dissents for a hike could take place amid signs of a fractured FOMC. The Dow was pressured by a flareup in oil prices following fresh strikes between Iran and the US, adding to pro-inflationary risks. Visa rebounded and gained 1% after posting growth in revenue last quarter.