2026.03.1818:12:34UTC+00US Stocks Hold Pullback After Fed

US equity indices closed lower on Wednesday after the FOMC left interest rates unchanged, as expected, and reaffirmed its median projection for one rate cut this year. The S&P 500 declined 0.7% and the Dow fell nearly 1%, while strength in technology names helped limit losses in the Nasdaq 100 to 0.4%.

A sizeable bloc of FOMC members projected no rate cuts in 2024, underscoring concern that the recent surge in energy prices could exert more persistent upward pressure on consumer inflation, broadly in line with market expectations. That anxiety was compounded by an exceptionally strong PPI reading released earlier in the day. Even so, the Fed’s communication suggested a more balanced assessment of risks to both sides of its mandate, preserving a degree of uncertainty around the future policy path.

Geopolitical tensions also weighed on sentiment: strikes on Iranian energy infrastructure pushed key energy prices higher again and drove yields up, adding pressure across equities. In credit services, Visa and Mastercard each dropped 3%, leading the sector lower. Among defensives, B&G Foods and Walmart both lost more than 2%, capping a downbeat session for traditionally defensive names.