FX.co ★ US Stocks Resume Slide

US stocks fell in volatile trading Wednesday as investors weighed the Federal Reserve’s policy outlook ahead of key tech earnings. The S&P 500 and Nasdaq 100 each declined 0.7%, while the Dow dropped 900 points. Microsoft and Meta were subdued ahead of their post-market earnings releases, seen as the next major gauge of AI-related infrastructure spending.

Mounting concerns that AI capital expenditures may be overextended have recently weighed on the “Magnificent 7” megacap stocks and sparked a pullback in chipmakers, paring their strong gains from late last quarter. Micron, Applied Materials, and Sandisk fell between 4% and 8% following downbeat results from SK Hynix.

Meanwhile, the Fed left interest rates unchanged in what was described as its least predictable meeting in 15 years, with three policymakers dissenting in favor of a hike. The Dow also came under pressure from a renewed spike in oil prices after fresh clashes between Iran and the US, which reinforced inflation concerns. On a brighter note, Visa reversed earlier weakness to close 1% higher after reporting revenue growth last quarter.