Wall Street indexes fall more than 1%, hit by tech and Iran war worries - Reuters

💡 Major US indexes decline due to tech sector weakness and Iran conflict concerns

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The S&P 500 ($SPY) index fell 1.2% to 3,965, while the Nasdaq Composite ($QQQ) dropped 1.4% to 13,350. $AAPL and $MSFT were among the biggest losers in the tech sector, which has been a driving force behind the market's recent gains.

Tech Sector Weakness

The tech-heavy Nasdaq Composite has now declined for four straight days, with growth stocks ($AMZN, $FB) leading the way lower. The sector's poor performance has weighed on the broader market, as investors worry about a potential slowdown in earnings growth.

Iran Conflict Tensions

The escalating situation in the Middle East has also contributed to the market's decline, with investors growing increasingly concerned about the potential for oil price spikes ($USO). The 10-year Treasury yield rose to 2.8% in the aftermath, its highest level since January, as investors sought safe-haven assets.

Global Market Impact

The decline in US stocks has been mirrored in other major markets around the world, with the FTSE 100 ($EWU) and CAC 40 ($EWQ) also falling over 1%. The yen (JPY) strengthened against the dollar (USD) as investors sought safe-haven assets.

What It Means for Investors