The blue-chip index fell sharply Wednesday as the Federal Reserve maintained rates amid rising oil prices near $85 per barrel.
The Dow Jones Industrial Average plunged more than 1,000 points Wednesday following the Federal Reserve’s decision to keep interest rates unchanged. U.S. oil prices nearing $85 per barrel added to investor concerns, pressuring equities.
Over the past five years, the Dow has closed down 1,000 points or more nine times. Historically, the index tends to decline further in the week following such drops but recovers with median gains of nearly 2% after one month and 9.1% after three months.
Market reactions have varied by event. Three of the nine declines occurred in April 2025 after trade tariffs were announced, while four others took place in 2022 amid inflation fears and Fed rate hikes.