Wall Street Extends Losses Following Fed Rate Decision, Major Tech Earnings Scheduled
Wall Street Moves Lower Amid Inflation Worries and Uncertainty
NEW YORK, April 29 - Wall Street's three major stock indexes declined on Wednesday, with crude prices surging due to concerns over a prolonged blockade of Iranian ports, which may lead to ongoing supply pressures in the Middle East.
The U.S. Federal Reserve concluded its monetary policy meeting, leaving interest rates unchanged as expected. However, the decision was its most divided since 1992, reflecting uncertainties surrounding rising energy prices and inflation worries. The Fed's policy statement revealed a divided vote on interest rates, with the central bank's more dovish members pushing for a rate cut.
The Dow Jones Industrial Average fell 369.09 points, or 0.75%, to 48,772.84, while the S&P 500 lost 21.78 points, or 0.31%, to 7,117.02. The Nasdaq Composite lost 89.82 points, or 0.36%, to 24,574.33.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Index | Previous Close | Current Close | Change |
|---|---|---|---|
| Dow Jones Industrial Average | 49,141.93 | 48,772.84 | -369.09 (-0.75%) |
| S&P 500 | 7,138.80 | 7,117.02 | -21.78 (-0.31%) |
| Nasdaq Composite | 24,664.15 | 24,574.33 | -89.82 (-0.36%) |
Investors were also focused on a quartet of high-profile earnings reports due after the closing bell from four artificial intelligence-related megacap firms: Amazon, Alphabet, Meta Platforms, and Microsoft. The Philadelphia SE Semiconductor index was up 1.5% on Wednesday, having gained 43.8% so far this year.
Data-storage companies saw gains following an upbeat fourth-quarter forecast from Seagate Technology. Seagate jumped 10.1%, while peers SanDisk and Western Digital gained between 7.1% and 7.4%. Starbucks advanced 9.1% after raising its annual profit forecast, while Visa jumped 9% after the payments processing company raised its forecast for full-year earnings. NXP Semiconductors surged 26.6% after providing second-quarter revenue and revenue expectations above Wall Street estimates.
Declining issues outnumbered advancers by a 2.62-to-1 ratio on the NYSE, with 154 new highs and 66 new lows. On the Nasdaq, 1,277 stocks rose and 3,461 fell as declining issues outnumbered advancers by a 2.71-to-1 ratio. The S&P 500 posted 20 new 52-week highs and 23 new lows, while the Nasdaq Composite recorded 71 new highs and 113 new lows.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of market volatility following the Fed's decision to hold interest rates steady.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
