Wall Street falls as Fed keeps rates steady amid rising oil prices and Iran war

Market Overview - Wall Street experienced a sharp decline after the Federal Reserve decided to keep U.S. interest rates steady, projecting only a single rate cut for the year due to economic risks from rising oil prices and the ongoing conflict involving the U.S. and Israel with Iran [1] - Major stock indexes continued to fall following Fed Chair Jerome Powell's news conference, which highlighted the uncertainty created by the war for the economic outlook [2] Economic Indicators - The Producer Price Index (PPI) rose by 3.4% year-on-year, surpassing economists' expectations of 2.9%, indicating potential further acceleration in prices due to the Middle East conflict affecting shipping and oil costs [3] - Brent crude oil prices reached nearly $110 per barrel following reports of attacks on Iranian oil facilities, contributing to inflationary pressures [3] Stock Performance - The S&P 500 index fell by 1.36% to close at 6,624.70 points, marking its lowest close in nearly four months and a decline of about 3% in 2026 [4] - The Nasdaq and Dow Jones Industrial Average also saw declines of 1.46% and 1.63%, respectively [4] Sector Performance - All 11 S&P 500 sector indexes declined, with consumer staples leading the losses at 2.44%, followed closely by consumer discretionary at 2.32% [5] - AMD's stock rose by 1.6% after announcing an expansion of its strategic partnership with Samsung Electronics for AI infrastructure memory chips [5] - Micron Technology's stock dropped by 4.3% in extended trading despite projecting quarterly sales above Wall Street expectations and increasing its fiscal 2026 capital expenditure plans [6] Notable Company Movements - Apollo Global Management's stock increased by 2.1% after recovering from previous losses related to private credit quality concerns [7] - Lululemon's stock surged by 3.8% following positive quarterly results, while Macy's stock jumped by 4.7% after reporting a smaller-than-expected impact from tariffs and beating quarterly profit estimates [7] Market Breadth - Declining stocks outnumbered advancing ones within the S&P 500 by a ratio of 5.2-to-one, with the S&P 500 recording 17 new highs and 15 new lows, while the Nasdaq saw 42 new highs and 218 new lows [8] - Trading volume on U.S. exchanges was relatively light, with 19.4 billion shares traded, slightly below the average of 19.8 billion shares over the previous 20 sessions [8]