2026.03.1818:44:10UTC+00US Equities Fall Further

US stocks extended losses on Wednesday after the FOMC left interest rates unchanged and highlighted persistent upside risks to inflation. The S&P 500 and Nasdaq 100 each declined nearly 1%, while the Dow fell by about 600 points. A sizable bloc of FOMC officials projected no rate cuts this year, citing concerns over tariffs and the potential for higher energy prices to feed through to consumer inflation. That stance was broadly in line with rate futures, which already reflected skepticism that the Fed has room to ease policy.

The hawkish tone was reinforced by an unexpectedly strong PPI report released earlier in the day. However, evidence of a softening labor market helped partially offset inflation worries, reflecting the Fed’s dual mandate trade-offs.

Geopolitical tensions added to market pressure, as strikes on Iranian energy infrastructure drove another leg higher in key energy prices, pushing yields up and weighing on equities across sectors. In credit services, Visa and Mastercard each fell about 3%. Defensive names also came under pressure, with B&G Foods and Walmart losing more than 2% apiece. In contrast, Micron gained roughly 1.5% ahead of its earnings release.