NEW YORK, New York - U.S. stock markets closed sharply lower in a broad-based selloff on Wednesday, with the Dow Jones Industrial Average shedding more than 1,100 points as investors fled risk assets amid mounting concerns over corporate earnings and economic growth, and the Fed leaving official rates unchanged at its monthly meeting.

"The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate," the U.S. central bank's FOMC said in a statement following its meeting on Wednesday

"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little."

"Inflation remains elevated relative to the Committee's two, percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability," the statement said.

The Standard and Poor's 500 tumbled 112.39 points, or 1.51 percent, to settle at 7,316.39. The benchmark index traded within a session range of 7,313.92 to 7,450.84, with trading volume reaching 3.465 billion shares. The decline erased recent gains and pushed the index further from its all-time high of 7,620.90.

The Dow Jones Industrial Average suffered its worst session in months, cratering by 1,152.46 points, or 2.18 percent, to close at 51,594.86. The blue-chip index traded between an intraday low of 51,551.18 and a high of 52,674.21, with volume of 511.404 million shares. The drop marked the Dow's steepest single-day percentage decline since late 2025.

The tech-heavy NASDAQ Composite also took a significant hit, falling 433.97 points, or 1.74 percent, to finish the session at 24,442.94. Trading volume on the Nasdaq reached 6.139 billion shares, reflecting heightened selling pressure across technology and growth names.

All 11 major S&P 500 sectors ended in negative territory, with technology, consumer discretionary, and financials leading the losses. Defensive sectors such as utilities and consumer staples fared relatively better but still finished lower on the session.

Traders now turn their attention to Thursday's initial jobless claims and pending home sales data, as well as Friday's personal consumption expenditures (PCE) inflation report, which could provide further clues on the Federal Reserve's policy path.

U.S. Dollar Slumps Broadly as Majors Rally; Aussie Stands Alone as Lone Loser

The U.S. dollar endured a widespread selloff in foreign exchange trading on Wednesday, with every major currency posting gains against the greenback except for the Australian dollar, which bucked the trend and finished lower. Investors showed their displeasure at the Federal Reserve's decision to maintain rates despite the strong economy and employment figures, which are pushing inflation higher. Bond prices fell sharply, underlining the concern that the Fed was taking its eye off its main mandate - to bring inflation down to 2 percent.

The euro led the charge higher, with the EUR-USD pair surging to 1.1456, a gain of 0.61 percent on the session. The single currency added 0.01 points in absolute terms as traders continued to digest divergent monetary policy signals from the European Central Bank and the Federal Reserve.

Sterling also posted solid advances Wednesday, as GBP-USD climbed to 1.3359, representing an increase of 0.53 percent against the dollar. The pound extended its recent recovery amid easing concerns over the U.K. economic outlook.

The Japanese yen strengthened notably against the greenback, with USD-JPY falling to 163.43, a decline of 0.26 percent for the dollar. The move reflected safe-haven flows and speculation over potential intervention from Japanese authorities as the yen continued to claw back from multi-decade lows.

Other dollar-pairs painted a similarly weak picture for the U.S. currency on Wednesday. The USD-CAD pair dropped to 1.4041, a loss of 0.47 percent for the dollar, as rising oil prices buoyed the commodity-linked Canadian currency. Meanwhile, the Swiss franc rallied sharply, with USD-CHF sliding to 0.8147, down 0.54 percent against the dollar, as investors sought refuge in the safe-haven currency amid broader risk-off sentiment in equity markets.

The sole exception to the dollar's broad weakness was the Australian dollar. The AUD-USD pair fell to 0.6956, a decline of 0.27 percent, making it the only major currency to lose ground against the greenback on Wednesday. The underperformance came as weaker-than-expected domestic economic data weighed on the Aussie, offsetting the dollar's general malaise.

Traders now look ahead to Thursday's U.S. initial jobless claims and durable goods orders data for further direction on the dollar's near-term trajectory.

World Markets Close Mixed Wednesday as Tech Selloff Weighs on Asian Bourses; London and Hong Kong Buck Trend

Global stock markets delivered a fractured performance to close the midweek session, with European indexes mostly retreating while select Asian benchmarks surged. The standout loser of the day was South Korea's KOSPI, which suffered a dramatic plunge, while London's FTSE 100 managed to eke out gains amid otherwise tepid trading across Europe.

Canadian equities followed Wall Street lower. The S&P/TSX Composite Index declined 415.92 points, or 1.16 percent, to close at 35,333.78, with trading volume of 285.158 million shares. The energy and financial sectors weighed heavily on the Toronto benchmark as commodity prices softened and bond yields fluctuated.

In the United Kingdom, the FTSE 100 finished the day in positive territory, climbing 37.39 points, or 0.34 percent, to settle at 10,908.41. The index traded within a session range of 10,864.11 to 10,951.06, reflecting cautious optimism among domestic investors.

Continental Europe, however, painted a gloomier picture. Germany's DAX closed nearly flat with a symbolic loss, dipping 3.53 points, or 0.01 percent, to end at 25,460.48.

In France on Wednesday, the CAC 40 fell more sharply, shedding 50.51 points, or 0.60 percent, to finish at 8,408.27.

The broader EURO STOXX 50 index declined by 40.67 points, or 0.65 percent, closing at 6,248.84, while the Euronext 100 Index lost 4.69 points, or 0.25 percent, to settle at 1,899.86. Belgium's BEL 20 also retreated, dropping 18.05 points, or 0.31 percent, to 5,727.91.

Asian markets showed significant divergence. Hong Kong's HANG SENG INDEX delivered a robust performance, surging 497.07 points, or 1.96 percent, to close at 25,807.92, bouncing off an earlier low of 25,487.16.

In Singapore, the STI Index followed suit, gaining 97.08 points, or 1.73 percent, to finish at a session high of 5,713.19.

Australian equities also advanced on Wednesday, with the S&P/ASX 200 rising 90.80 points, or 1.01 percent, to 9,038.60, and the broader ALL ORDINARIES adding 87.70 points, or 0.96 percent, to end at 9,199.70.

In New Zealand, the S&P/NZX 50 INDEX rose 114.74 points, or 0.83 percent, to 13,976.67.

India's S&P BSE SENSEX climbed 888.68 points, or 1.16 percent, closing at 77,654.60, while in Malaysia, the FTSE Bursa Malaysia KLCI edged up 3.08 points, or 0.18 percent, to 1,715.56. 

However, Wednesday's session was marred by a brutal selloff in Northeast Asia. South Korea's KOSPI Composite Index cratered by a staggering 360.42 points, or 5.98 percent, closing at 5,663.22.

In Taiwan, the TWSE Capitalization Weighted Stock Index also tumbled, plunging 1,564.18 points, or 3.76 percent, to finish at 40,039.18. In Japan on EWednesday, the Nikkei 225 fell 930.73 points, or 1.49 per cent, settling at 61,434.19.

Meanwhile, mainland China's SSE Composite Index bucked the regional tech-driven selloff, adding 15.15 points, or 0.40 percent, to close at 3,828.47, supported by strong trading volume of 1.288 billion shares.

Elsewhere in Asia, Indonesia's IDX COMPOSITE declined 39.20 points, or 0.64 percent, to 6,091.39, while Israel's TA-125 slipped 38.45 points, or 0.96 percent, to 3,985.02.

In Africa and the Middle East, Egypt's EGX 30 Price Return Index gave back 102.70 points, or 0.19 percent, closing at 53,627.30 on trading volume of 258.639 million.

In South Africa on Wednesday, the Top 40 USD Net TRI Index managed a modest gain of 11.79 points, or 0.18 percent, to finish at 6,548.37.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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