Wall Street ended sharply lower on
Wednesday after the Federal Reserve held U.S. interest rates
steady and projected only a single rate cut for the year as
officials took stock of economic risks from surging oil prices
and the U.S. and Israeli war with Iran.
New projections from U.S. central bank policymakers showed
the Fed’s benchmark overnight interest rate would fall by just a
quarter of a percentage point by the end of this year, with no
hint of timing.
Major stock indexes extended declines after Fed Chair Jerome
Powell held a news conference and reiterated the uncertainty the
war creates for the economic outlook.
Economists had not expected the Fed to change its interest
rate.
“The Fed is on hold. With inflation running above target and
the economy running above trend, and elevated uncertainty about
the path of the Iran war, there is no argument for easing
policy,” said Michael Rosen, chief investment officer at Angeles
Investments in Santa Monica, California.
“The bigger challenge for the Fed, exacerbated by the war,
is balancing its dual mandate of full employment and low, stable
inflation. Should the war persist and oil prices remain high, it
will cause economic slowing. But easing monetary policy would be
a mistake as that would only fuel inflation.”
Earlier, the U.S. Labor Department said the Producer Price
Index rose 3.4% year-on-year, exceeding economists’ 2.9%
forecast, with prices at risk of accelerating further as the
Middle East conflict lifts shipping and oil costs.
Brent crude extended gains and reached near $110 a barrel after
an Iranian news agency reported that some facilities belonging
to Iran’s oil industry in South Pars and Asaluyeh were attacked.
The S&P 500 declined 1.36% to end the session at 6,624.70
points, its lowest close in nearly four months. It is now down
about 3% in 2026.
The Nasdaq declined 1.46% to 22,152.42 points, while the Dow
Jones Industrial Average declined 1.63% to 46,225.15 points.
All of the 11 S&P 500 sector indexes declined, led lower by
consumer staples, down 2.44%, followed by a 2.32% loss
in consumer discretionary.
AMD gained 1.6% after agreeing with Samsung Electronics
to expand their strategic partnership on memory chip
supplies for AI infrastructure. Nvidia dipped 0.8%
after securing Beijing’s approval to sell its
second-most-powerful artificial intelligence chips in China.
Micron Technology tumbled 4.3% in extended trade
after the memory chipmaker projected quarterly sales above Wall
Street expectations and said it was boosting its fiscal 2026
capital expenditure plans.
Asset manager Apollo Global Management rose 2.1%,
rebounding from sharp losses in the previous week on private
credit quality concerns.
Lululemon surged 3.8% after the yoga-wear maker’s
quarterly results. Founder Chip Wilson, who is in a proxy battle
with the company, said lead director David Mussafer’s decision
to exit the board was “a step in the right direction”, and
reiterated the need for a “substantial” board refresh.
Macy’s jumped 4.7% after the department store chain said
it expected a comparatively smaller impact from tariffs in the
second half of the year and beat quarterly profit estimates.
Declining stocks outnumbered rising ones within the S&P 500
by a 5.2-to-one ratio.
The S&P 500 posted 17 new highs and 15 new lows; the Nasdaq
recorded 42 new highs and 218 new lows.
Volume on U.S. exchanges was relatively light, with 19.4
billion shares traded, compared to an average of 19.8 billion
shares over the previous 20 sessions.
Published on March 19, 2026
