Markets News Today: Stocks Slump on Fed Rate Decision; SpaceX Stock on Track to Snap Winning Streak
Major U.S. stock indexes fell Wednesday after the Federal Reserve left interest rates unchanged but signaled a potential rate hike this year, while SpaceX shares dropped 2% amid volatility. The Dow Jones Industrial Average declined 0.8%, the Nasdaq Composite slid 0.9%, and the S&P 500 fell 1%, with chip stocks rebounding slightly from earlier losses.
Major U.S. stock indexes declined Wednesday following the Federal Reserve’s decision to hold interest rates steady while hinting at a possible rate hike this year. The Dow Jones Industrial Average dropped 0.8% after briefly rising 0.5% earlier, the Nasdaq Composite fell 0.9%, and the S&P 500 lost 1%. Tech and chip stocks, which had slumped the previous day, weighed on the Nasdaq and S&P 500, though the Dow reached its second consecutive record close. The Fed’s decision to keep rates unchanged aligned with expectations, but its updated economic outlook shifted, with half of the policy committee now forecasting at least one rate hike in 2026. In March, no members anticipated hikes, but rising inflation and a strong labor market prompted the change. The Fed’s policy statement was trimmed significantly, reflecting new Chair Kevin Warsh’s preference for keeping more discussions private. SpaceX’s stock (SPCX) faced a setback, falling 2% after a 50% surge in its third trading session following its IPO. The company’s market value dipped slightly below $2.7 trillion, placing it fifth globally, between Amazon ($2.65 trillion) and Microsoft ($3 trillion). Meanwhile, chip stocks rebounded, with the PHLX Semiconductor Index (SOX) rising over 3%, though all seven Magnificent Seven tech stocks remained in negative territory. Oil prices showed minimal movement, with West Texas Intermediate futures inching up to $76.20 per barrel and Brent crude slipping to $79. The market reacted to an upcoming Middle East memorandum of understanding aimed at halting fighting and reopening the Strait of Hormuz. The 10-year Treasury yield rose to 4.49%, up from 4.45% the prior day, impacting mortgage rates. Bitcoin traded near $64,600, down from earlier highs, while gold futures fell 2% to $4,260 per troy ounce. The U.S. dollar index climbed 0.8% to 100.40, reflecting stronger demand for the greenback. Fed Chair Warsh dismissed market reactions, emphasizing the central bank’s focus on long-term economic questions rather than short-term volatility.
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