ISTANBUL

On Wednesday, the New York Stock Exchange closed lower after the Fed kept its policy rate unchanged; around $800 billion wiped from share markets.

The Dow lost 1.63%, or 768.11 points, to close at 46,225.15.

The Nasdaq composite fell 1.46%, or 327.11 points, to 22,152.42, while the S&P 500 dropped 1.36%, or 91.39 points, to 6,624.70.

The Volatility Index (VIX), often referred to as the market’s “fear index,” rose by 12.16% to 25.09.

As news regarding the ongoing tensions in the Middle East, fluctuations in oil prices, macroeconomic data released in the US, and the Fed’s monetary policy decisions remained in the spotlight, equity markets followed a negative trend.

The disruption of traffic in the Strait of Hormuz and supply concerns resulting from US and Israeli attacks on Iran and Iran’s retaliatory strikes continued to put pressure on markets due to rising oil prices.

As of 2145GMT, the price of Brent oil was at above $111, up around 7.5%, while West Texas Intermediate (WTI) crude oil rose by 5% to $100 per barrel.

Amid concerns that rising energy costs are fueling inflationary pressures, data released in the US revealed that producer inflation accelerated in February.

According to the data, the US Producer Price Index rose 0.7% month-over-month and 3.4% year-over-year in February, exceeding expectations.

Producer inflation reached its highest level in the past year on a year-over-year basis.

On the monetary policy front, the Fed kept its policy rate steady at the 3.5–3.75% range, in line with expectations.

The Fed also released its economic projections, maintaining its forecast for the federal funds rate at 3.4% by year-end, a projection that signaled the retention of expectations for a single rate cut in 2026.

European stocks

The stock markets in Europe also saw decreases Wednesday except Spain, with the pan-European Stoxx Europe 600 index fell 0.75% to close at 597.93 points.

The UK’s FTSE 100 decreased 0.94% to 10,305.29, Italy’s FTSE MIB 30 was down 0.33% to finish at 44,741.34, and France’s CAC 40 lost 0.06% to 7,969.88.

Germany’s DAX 40 declined 0.96% to 23,502.25, while Spain’s IBEX 35 posted an increase of 0.29% to 17,299.10.