Market Turmoil Precedes Fed Rate Decision Amid Middle East Tensions and Tech Earnings US markets declined Wednesday amid Iran’s surprise attacks on the U.S., investor anticipation of the Federal Reserve’s interest rate decision, and mixed earnings reports from major technology firms. The S&P 500 index declined 0.8% as the technology-heavy Nasdaq Composite fell 1.1%. The Dow Jones Industrial Average dropped 1.5%, losing over 800 points, reflecting heightened oil prices following renewed Middle East hostilities. SK Hynix reported a 557% year-over-year profit increase in its second quarter, though results fell short of Wall Street forecasts, raising concerns about the artificial intelligence sector’s growth trajectory. Asian investors offloaded chip stocks including Samsung and SK Hynix, pushing South Korea’s KOSPI Composite down nearly 6%. Key “Magnificent Seven” technology companies Microsoft and Meta delivered post-market earnings updates, with Alphabet’s recent capital expenditure guidance intensifying scrutiny of AI investment sustainability. Iran’s military launched an attempted surprise attack Monday, re-igniting direct U.S.-Iran conflict for the first time since a Friday ceasefire. Oil prices surged 7%, with Brent crude exceeding $90 per barrel as tensions escalated. The Federal Reserve faces critical scrutiny ahead of its 2 p.m. ET policy decision. Traders anticipate rate stability despite persistent inflationary pressures, with Fed Governor Kevin Warsh’s communication restrictions leaving rate hike possibilities open. Beyond technology earnings, consumer-focused firms including Starbucks, Chipotle, Qualcomm, and Arm Holdings will report quarterly results after markets close. Procter & Gamble shares declined Wednesday following below-expectation revenue disclosures.