29.07.202614:38:38UTC+00US Stocks Fall Further

US stocks extended losses on Wednesday as renewed weakness in chipmakers weighed on the market ahead of major tech earnings and the Federal Reserve’s policy decision. The S&P 500 fell 0.8%, the Nasdaq 100 declined 1%, and the Dow Jones Industrial Average dropped 800 points.

Microsoft and Meta slipped 0.5% each ahead of their post-market earnings releases, which are being closely watched as key indicators of AI infrastructure spending. Concerns that AI-related capital expenditure has been overextended have recently pressured the “Magnificent Seven” megacap stocks and sparked a pullback in semiconductor names, paring their gains from late last quarter. Micron, Applied Materials, and SanDisk slid between 4% and 8% following downbeat results from SK Hynix.

The Fed is widely expected to leave interest rates unchanged, though some dissent in favor of a hike is possible amid signs of a more divided FOMC. The Dow also came under pressure from a jump in oil prices after renewed clashes between Iran and the US, heightening inflation concerns. Bucking the broader trend, Visa rose 1% after reporting revenue growth last quarter.