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Stock market today: Dow, S&P 500, Nasdaq futures steady in countdown to Fed decision, AI earnings test
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US stocks dropped on Wednesday as bond yields rose after the Federal Reserve voted to hold rates steady, with three members dissenting and voting for a hike.
The Dow Jones Industrial Average (^DJI) fell more than 1,100 points or 2.2% as oil prices rose amid renewed tensions in the Middle East, and long-dated Treasury yields rose following the Fed decision.
The S&P 500 (^GSPC) dropped 1.5%, while the tech-heavy Nasdaq Composite (^IXIC) sank about 1.7% as a sell-off in chip stocks continued to deepen.
It could be a make-or-break moment for tech stocks after Alphabet's (GOOG, GOOGL) capital expenditure guidance last week spooked markets, resurfacing fears about the AI boom's sustainability.
Oil prices jumped, with Brent crude (BZ=F) gaining more than 7% to trade back over $90 per barrel.