It was a wild night on Wall Street with the S&P 500 experiencing a number of trillion dollar swings up and down, only to finish sharply lower at the closing bell.<\/p>\n
The blue-chip Dow had a worse night and the tech-centric Nasdaq worse again as chip makers and AI stocks continued to be sold off.<\/p>\n
S&P 500: -1.5%Dow: -2.2%Nasdaq: -2.1%<\/p>\n
The ASX looks likely to be hit by the swing with ASX 200 futures toppling from a likely gain of 0.3% to a 0.7% sell off in a matter of minutes earlier this morning.<\/p>\n
While the Federal Reserve’s decision to leave rates on hold in the target range of 3.50%-3.75% was largely expected by the market, the division of opinion in a 9-to-3 decision wasn’t.<\/p>\n
The three dissenting votes favoured a 25-basis point hike to head off rising inflation and leaves the prospect of a September rate hike very much in play.<\/p>\n
“The Fed held pat, as expected. The bigger question now though becomes, how much pressure will they have to hike in September?’ Carson Group chief market strategist Ryan Detrick told Reuters.<\/p>\n
“Inflation is running hot and with surging crude oil, the market expects the next hike to indeed be in September.”<\/p>\n
The benchmark S&P 500 hit its lowest level in a month, while the Nasdaq Composite was down about 9% from its June record high, extending recent losses as investors unloaded AI-related stocks due to ongoing concerns about heavy capital spending.<\/p>\n
Meta Platforms dropped 4% in extended trade after the social media company said it now expects 2026 capital expenditure to be between $US130 billion and $US145 billion, compared with its prior forecast of $US125 billion to $145 billion.<\/p>\n
Also after the bell, Microsoft climbed 0.6% after it topped Wall Street estimates for quarterly cloud revenue growth, a sign its massive spending on AI infrastructure was paying off.<\/p>\n
Shorter dated US Treasury bonds bounced around, initially climbing in line with a spike in oil prices but sliding marginally after the Fed’s decision.<\/p>\n
However, longer dated 30-year Treasuries jumped to 5.2% their highest level since 2007.<\/p>\n
The US dollar slipped a bit, while the Aussie dollar was largely unmoved trading just below 70 US cents.<\/p>\n
The global oil benchmark Brent crude futures jumped around 8%, back above $US90\/barrel.<\/p>\n
The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq on Wednesday, blaming them for drone attacks on Saudi oil facilities.<\/p>\n
The strikes came hours after the US military said it had averted a surprise Iranian attack on U.S. troops in the region. Iran said it had fired on ships in the Strait of Hormuz and at U.S. bases in Jordan.<\/p>\n
In Egypt, explosions hit a natural gas loading port on the Mediterranean Sea, and British maritime security company Ambrey said a U.S.-owned floating storage tanker there had been hit by a drone.<\/p>\n
“The market is rapidly pricing in the enhanced risk to supplies in the region once again,” Again Capital John Kilduff said.<\/p>\n
Gold erased earlier losses to be around 1% higher after the Fed’s decision.<\/p>\n","protected":false},"excerpt":{"rendered":"It was a wild night on Wall Street with the S&P 500 experiencing a number of trillion dollar…\n","protected":false},"author":2,"featured_media":805048,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[2001,64,63,166,2009,99,2005,160,2010,2006,2002,1491],"class_list":["post-832246","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-asx","tag-au","tag-australia","tag-australian-dollar","tag-bitcoin","tag-business","tag-dow-jones","tag-live-blog","tag-live-update","tag-nyse","tag-share-market","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/832246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=832246"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/832246\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/805048"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=832246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=832246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=832246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}