U.S. equities decline sharply amid rising geopolitical risks and anticipation of the Federal Reserve’s rate decision later Wednesday.
The Dow Jones Industrial Average dropped $89.88 points, or 1.7%, as West Texas Intermediate crude futures surged 6.9% to $89.88 a barrel. The move followed Iran’s missile attack on U.S. forces in the Middle East and retaliatory threats from Washington.
The S&P 500 and Nasdaq Composite also fell, down 1.1% and 1.4% respectively, as investors weighed geopolitical uncertainty ahead of the Fed’s rate announcement. Markets had expected the central bank to hold rates steady at 3.5%-3.75%, though a hike remained possible.
Semiconductor stocks extended losses, with the iShares Semiconductor ETF declining further. Fed Chair Kevin Warsh is set to address the media following the decision.