Dow slips 90 pts as Fed decision, Big Tech earnings keep markets on edge

• The Fed is expected to hold rates steady in what may be Chair Jerome Powell's final meeting before Kevin Warsh's succession, with markets watching for inflation commentary amid elevated oil prices
• Big Tech earnings will focus on AI investment justification after OpenAI reportedly missed internal growth targets, testing the semiconductor sector's 41.7% year-to-date rally
• Individual stocks showed volatility: Robinhood fell 12% on missed profit expectations while NXP Semiconductors surged 23% on strong guidance, and oil prices jumped over 4% on US-Iran blockade reports

Market Summary: Dow Slips Amid Fed Decision and Big Tech Earnings

Market Performance:

US markets opened lower on Wednesday, with the S&P 500 down 0.18%, the Dow Jones falling 92 points, and the Nasdaq declining 0.47%. Investors adopted a cautious stance ahead of critical catalysts.

Key Drivers:

*Federal Reserve Meeting:* The Fed is expected to hold interest rates steady in what will likely be Jerome Powell's final meeting as chair before Kevin Warsh's succession. Markets are watching closely for inflation commentary, particularly as oil prices surge and inflation remains above the 2% target.

*Big Tech Earnings:* Four "Magnificent Seven" companies—Amazon, Meta, Microsoft, and Alphabet—report after market close. Investors are scrutinizing AI investment justification and forward guidance. The Philadelphia SE Semiconductor Index has surged 41.7% year-to-date, though concerns about AI sustainability emerged following reports that OpenAI missed internal growth targets.

Energy Markets:

Oil prices spiked sharply, with WTI crude rising over 4% to above $104/barrel and Brent surpassing $116. The surge follows reports of an extended US blockade of Iranian ports, raising supply disruption concerns.

Notable Stock Movers:

• NXP Semiconductors: Jumped 23% on strong Q2 revenue and profit forecasts
• Seagate: Surged nearly 19% on robust outlook, lifting peers including Western Digital and Micron
• Robinhood: Dropped 12% after missing Q1 profit expectations
• Starbucks: Gained 6.1% on raised annual profit guidance
• Visa and Mastercard: Rose on improved earnings outlook

Market Implications:

The confluence of Fed policy uncertainty, Big Tech earnings scrutiny, and geopolitical energy tensions creates a volatile environment. AI-driven rally sustainability remains questionable as investors demand concrete returns on massive technology investments.