Major stock indexes closed mostly lower after the Federal Reserve held interest rates steady and ahead of four trillion-dollar companies’ quarterly results. Meanwhile, oil prices continued their ascent after the US President said to prepare for an extended blockade of Iran.
The blue-chip Dow Jones Industrial Average and benchmark S&P 500 finished Wednesday down a respective 0.6% and less than 0.1%, and the tech-heavy Nasdaq Composite ticked higher, after the Fed’s policy committee voted to keep its key interest rate in a range of 3.50% to 3.75%, as expected, although four committee members dissented. The 10-year Treasury yield, which influences interest rates on mortgages and other consumer loans, rose to nearly 4.42% at 4 p.m. ET from Monday’s closing level of 4.35% and 4.40% immediately after the Fed decision.
Investors mulled comments from outgoing Fed Chair Jerome Powell, who said he would “continue to serve as a governor for a period of time to be determined” after his term ends May 15. The Senate Banking Committee advanced Kevin Warsh’s nomination to replace Powell as Fed Chair on Wednesday morning.
After the closing bell, four Magnificent Seven tech giants—Alphabet (GOOG, GOOGL), Amazon (AMZN), Meta Platforms (META), and Microsoft (MSFT)—were set to report earnings. A fifth, Apple (AAPL), is slated to do so Thursday.
In notable post-earnings stock moves, NXP Semiconductors (NXPI) and Seagate Technology Holdings (STX) soared more than 25% and 11%, respectively. Visa (V) and Starbucks (SBUX) rose more than 8%, SoFi Technologies (SOFI) dropped 15%, and Robinhood Markets (HOOD) sank 13%.
Oil futures surged after The Wall Street Journal, citing U.S. officials, reported that the White House “has instructed aides to prepare for an extended blockade of Iran.” The President told Axios he rejected Iran’s peace offer, and said the blockade will remain in effect until they reach a nuclear deal. West Texas Intermediate futures, the U.S. crude oil benchmark, jumped 8.1% to $108.10 a barrel at 4 p.m. ET, while front-month contracts of Brent crude, the global benchmark, settled up 6.1% to $118.03.
Gold futures declined 1% to $4,560 an ounce. Bitcoin was at $75,000, down from overnight highs of $77,900. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was 0.2% higher at 98.86.