Markets drop after the Fed's rate decision, while Nvidia tumbles as the US considers restricting chip sales
On Wednesday, the S&P 500 declined after the US Federal Reserve left interest rates unchanged in its first policy decision of the year.
Nvidia shares also dropped following a strong session, according to CNBC.
The S&P 500 fell 0.47 percent to close at 6,039.31, while the Nasdaq Composite lost 0.51 percent, finishing at 19,632.32. The Dow Jones Industrial Average dropped 136.83 points, or 0.31 percent, to 44,713.52.
Nvidia’s stock reached session lows after Bloomberg News reported that Trump administration officials discussed new restrictions on the company’s chip sales to China.
The report followed concerns over China’s DeepSeek AI model. Nvidia shares ended the session down 4 percent and have fallen more than 13 percent this week.
The Fed kept the federal funds rate within a range of 4.25 percent to 4.50 percent. In its post-meeting statement, the American central bank acknowledged inflation concerns while explaining its decision to pause rate adjustments.
“The (US) unemployment rate has stabilized at a low level in recent months, and labour market conditions remain solid,” the statement read. “Inflation remains somewhat elevated.”
David Russell, global head of market strategy at TradeStation, described the statement as “a little hawkish” but noted that policymakers would wait until the March meeting before making any changes. “Data between now and then will set the tone for that next big decision,” he said.
He also noted, “[The] meeting is a non-event for Fed watchers. The central bank wants to be less of a factor over the next month as Trump takes the spotlight.”
During a press conference, Fed Chair Jerome Powell said he has had “no contact” with Donald Trump since the US president, speaking at the World Economic Forum in Davos, Switzerland, last week, stated he would push the Fed to lower interest rates.
Trump and Powell have had a strained relationship since Trump’s first term.
Investors also anticipated quarterly earnings reports from major technology companies, including Meta Platforms, Microsoft, and Tesla, set for release later in the day.
