Dow Drops 90 Amid Fed Decision and Big Tech Earnings

• The Fed's meeting is expected to keep rates unchanged and marks Chair Jerome Powell's likely final appearance before Kevin Warsh's succession, with markets watching for inflation commentary amid rising energy costs
• Oil prices surged over 4% (WTI above $104, Brent past $116) on reports of a US blockade on Iranian ports, adding pressure to inflation concerns
• Individual stock moves were sharp: Robinhood fell 12% on missed profit expectations, while NXP Semiconductors jumped 23% on strong guidance and Starbucks gained 6.1% after raising its annual profit forecast

Market Summary: Fed Decision and Big Tech Earnings Weigh on Stocks

Market Performance:

Wall Street opened lower on Wednesday, April 29, 2026, with the Dow Jones falling 92 points, the S&P 500 declining 0.18%, and the Nasdaq Composite dropping 0.47%. Markets traded in cautious territory ahead of critical catalysts.

Key Drivers:

*Federal Reserve Meeting:* Investors await the Fed's policy decision, with no interest rate change expected. This meeting marks Jerome Powell's likely final appearance as Fed Chair before Kevin Warsh's succession. Focus centers on Powell's commentary regarding inflation, which remains above the 2% target, and the impact of elevated energy prices on monetary policy.

*Big Tech Earnings:* Amazon, Meta Platforms, Microsoft, and Alphabet report after the bell. Markets are scrutinizing forward guidance and AI investment justification. The Philadelphia SE Semiconductor Index has surged 41.7% year-to-date, though sentiment faces headwinds from reports that OpenAI missed internal growth targets.

Energy Markets:

Oil prices spiked over 4%, with WTI crude surpassing $104 per barrel and Brent crude exceeding $116, driven by US preparations for an extended blockade of Iranian ports and potential Strait of Hormuz disruptions.

Notable Stock Movers:

• Robinhood (HOOD): Down 12% after missing Q1 profit expectations
• NXP Semiconductors (NXPI): Jumped 23% on strong Q2 revenue and profit forecast
• Seagate: Rose nearly 19% on robust guidance, lifting sector peers
• Starbucks: Gained 6.1% after raising annual profit forecast
• Visa and Mastercard: Advanced on improved earnings outlook

Market Implications:

The cautious sentiment reflects uncertainty around Fed policy direction, Big Tech's ability to monetize AI investments, and geopolitical risks impacting energy prices and inflation expectations.