S&P 500 Sees Worst Fed Day Since 2024 on War, Inflation Jitters

US stocks fell Wednesday, breaking a two-day rally after the Federal Reserve held rates steady, acknowledging that the Iran War casts uncertainty onto economic outlooks as tensions in the Middle East escalate.

The S&P 500 Index dropped 1.4% Wednesday, its worst rate-decision day since December 2024. Roughly five stocks were down for every one up, with all 12 sectors closing in the red. Consumer staples stocks led the decline, with Amazon.com, Inc. among the biggest laggards, dropping 2.5%. Brent crude oil prices soared to about $111. The tech-heavy Nasdaq 100 dropped 1.4%. The Cboe Volatility Index hovered around 25 from highs last week.