Stock Markets Slide as Fed Holds Rates

(MENAFN) On Wednesday, the New York Stock Exchange ended lower after the Federal Reserve opted to keep its policy rate unchanged, wiping out approximately $800 billion from equity markets.

The Dow Jones Industrial Average fell 1.63%, a decline of 768.11 points, closing at 46,225.15.

Meanwhile, the Nasdaq Composite dropped 1.46%, or 327.11 points, to settle at 22,152.42, and the S&P 500 slipped 1.36%, down 91.39 points, finishing at 6,624.70.

The Volatility Index (VIX), commonly called the market’s “fear index,” surged 12.16% to 25.09.

Investor sentiment remained subdued as attention focused on escalating tensions in the Middle East, fluctuations in oil prices, recent US macroeconomic figures, and the Fed’s monetary policy choices, leading to a broadly negative trend across stock markets.

Market pressure was further exacerbated by disruptions in the Strait of Hormuz and supply concerns stemming from US and Israeli strikes on Iran, coupled with Iran’s retaliatory attacks, contributing to the upward movement in oil prices.

By 2145 GMT, Brent crude oil traded above $111 per barrel, rising roughly 7.5%, while West Texas Intermediate (WTI) crude climbed 5% to $100 per barrel.

Meanwhile, amid worries that surging energy costs are intensifying inflationary pressures, US data revealed that producer inflation accelerated in February.

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