〈After-Hours US Stocks〉Fed Holds Rates Steady for Fifth Time, but Hawkish Dissent Sparks Market Turmoil; Dow Plunges Over 1,100 Points, SOX Crashes More Than 5%

U.S. stocks plunged late Wednesday (29th) after the Federal Reserve held interest rates steady, but three policymakers dissented in favor of a rate hike. Chair Jerome Powell reaffirmed the Fed’s commitment to fighting inflation, sending long-term Treasury yields soaring. Escalating Middle East tensions also pushed oil prices sharply higher, contributing to the sell-off. The Dow Jones Industrial Average tumbled over 1,100 points, led by Caterpillar and Goldman Sachs.

Semiconductors were among the hardest-hit sectors, with the Nasdaq Composite and S&P 500 both falling more than 1.5%, and the Philadelphia Semiconductor Index (SOX) plunging over 5%.

The Fed held the federal funds rate at 3.50%–3.75% for the fifth consecutive meeting. However, the Federal Open Market Committee (FOMC) showed rising internal divisions, with three officials voting against the decision and advocating for further tightening. With inflation still well above the Fed’s 2% target, the outcome was interpreted by markets as a hawkish signal.

Chair Powell reiterated after the meeting that the central bank remains committed to bringing inflation down to target. Investors now fear the Fed may maintain restrictive monetary policy for longer, triggering a sell-off in long-term U.S. Treasuries.

The 2-year Treasury yield fell 4 basis points, while the 10-year and 30-year yields rose 5 and 11 basis points, respectively. The 30-year yield breached 5.2%, reaching its highest level since 2007, steepening the yield curve further.

Geopolitical tensions in the Middle East also weighed on equities. U.S. Central Command reported that Iran attempted a surprise attack on Tuesday, marking the first renewed combat between the U.S. and Iran since they paused hostilities last Friday. Brent crude futures surged over 7%, reclaiming $90 per barrel.

U.S. stock market performance on Wednesday (29th):

Dow Jones Industrial Average: down 1,153.18 points, or 2.19%, closing at 51,594.14.

Nasdaq Composite: down 433.97 points, or 1.74%, closing at 24,442.94.

S&P 500: down 112.63 points, or 1.52%, closing at 7,316.15.

Philadelphia Semiconductor Index: down 588.19 points, or 5.33%, closing at 10,447.49.

NYSE FANG+ Index: down 283.34 points, or 1.69%, closing at 16,493.36.

Key Stocks

Tech giants in the NYSE FANG+ Index mostly declined. Meta (META-US) fell 1.31%; Apple (AAPL-US) dropped 0.56%; Alphabet (GOOGL-US) rose 0.90%; Microsoft (MSFT-US) fell 0.71%; Amazon (AMZN-US) declined 1.82%.

Semiconductor stocks in the SOX index suffered heavy losses. AMD (AMD-US) dropped 5.51%; Broadcom (AVGO-US) fell 2.78%; NVIDIA (NVDA-US) declined 3.55%; Applied Materials (AMAT-US) plunged 8.40%; Qualcomm (QCOM-US) fell 4.42%; Micron (MU-US) crashed 9.94%.

ADR shares of Taiwan-based companies also weakened. TSMC ADR (TSM-US) plunged 4.50%; ASE ADR (ASX-US) crashed 8.28%; UMC ADR (UMC-US) fell 1.44%; Chunghwa Telecom ADR (CHT-US) declined 0.25%.

Corporate News

SK Hynix reported strong second-quarter profit growth, but results missed Wall Street expectations. The market is now reassessing the pace of AI demand growth and whether the memory industry may face overinvestment and oversupply.

Investors also worry about intensifying semiconductor competition and the pressure on profitability and cash flow as major cloud providers continue to increase AI capital expenditures.

SK Hynix ADR (SKHY-US) fell another 2.6% to $126.79, dragging down memory peers SanDisk (SNDK-US) and Micron (MU-US), which plunged 7.32% and 9.94%, respectively.

Social media giant Meta reported after the close that earnings disappointed, with free cash flow plunging from $8.549 billion a year earlier to just $784 million. The company also narrowed its full-year capital expenditure forecast to $130–145 billion, sending its after-hours share price down over 7%.

Microsoft (MSFT-US) reported better-than-expected fourth-quarter results on Wednesday, sending its after-hours stock price up 4% initially, though gains later moderated.

Data storage company Seagate Technology (STX-US) rose 2.29% to $764.43. AI-driven demand for related products boosted the company’s fourth-quarter revenue and earnings.

Ford Motor (F-US) gained over 2% to $15.28. The company’s second-quarter operating profit beat expectations, and it raised its full-year outlook.

Fintech company SoFi Technologies (SOFI-US) was hammered, falling over 9% to $15.23. CEO Anthony Noto emphasized strong business growth in the latest quarter, but profits barely exceeded expectations, failing to win over Wall Street investors.