Dow tumbles 700 points as losses mount ahead of Fed decision: Live updates
A television station broadcasts Kevin Warsh, chairman of the US Federal Reserve, speaking after a Federal Open Market Committee (FOMC) meeting on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 17, 2026.
Michael Nagle | Bloomberg | Getty Images
Stocks fell on Wednesday, as oil prices spiked ahead of the Federal Reserve‘s latest interest rate decision.
The Dow Jones Industrial Average traded 761 points lower, or 1.4%. The S&P 500 shed 0.7%, while the Nasdaq Composite slid 0.9%.
Oil prices extended their gains after President Donald Trump told a Fox News reporter that the U.S. will be hitting Iran “hard” in response to the surprise attacks. West Texas Intermediate crude futures advanced 6.9% to trade at $89.88 a barrel.
This comes after U.S. Central Command said in a social media post late Tuesday that Islamic Revolutionary Guard Corps forces launched “multiple ballistic missiles in an attempted surprise attack on U.S. forces based in the Middle East.” The missiles were successfully intercepted, Centcom said.
Investors are also looking ahead to the Fed’s policy decision and subsequent press conference with Chairman Kevin Warsh on Wednesday afternoon. Fed funds futures traders are pricing in a nearly 70% likelihood that the central bank holds rates steady at the current targe range of 3.5% to 3.75%, according to CME’s FedWatch tool.
“We continue to believe markets are placing too much weight on inflation risk and too little weight on the economic consequences of further tightening,” said Julia Hermann, global market strategist at New York Life Investment Management. “A more hawkish communication stance would likely test today’s narrow market leadership more than the broader market.”
Semiconductors declined, with the iShares Semiconductor ETF (SOXX) last down more than 2%. Chip stocks are coming off four straight losing sessions, down 9% week to date, amid growing anxiety over the return on massive artificial intelligence spending, as well as fears of greater competition from China.
Micron Technology dipped more than 2%, while Advanced Micro Devices slipped more than 3%. Shares of KLA dropped more than 6%.
Shares of Procter & Gamble fell more than 3%, after the consumer goods company missed revenue expectations in its latest quarter. Ford Motor shares jumped 5% after the automaker beat earnings expectations and lifted its 2026 forecast.