Dow falls for fifth straight day as oil surges and Fed holds rates

• WTI crude surged 7.17% to $107.16 and Brent jumped 6.78% to $118.80 as Trump's extended Iran blockade raised inflation concerns
• The FOMC vote showed historic division with four dissenters, the most since October 1992; Powell confirmed he will remain as governor after his chairmanship ends in May
• Alphabet and Microsoft beat earnings expectations on cloud/AI strength, but Meta fell short on user growth and capex targets, dropping 6% after hours

Market Summary: Oil Surge and Fed Decision Drive Mixed Close

Market Performance:

The Dow Jones fell 280.12 points (-0.57%) to 48,861.81, marking its fifth consecutive decline. The S&P 500 slipped 0.04% to 7,135.95, while the Nasdaq edged up 0.04% to 24,673.24.

Oil Market Spike:

Crude prices surged on escalating Iran blockade concerns. WTI crude jumped 7.17% to $107.16 per barrel, while Brent crude climbed 6.78% to $118.80. President Trump instructed aides to prepare for an extended Iranian port blockade pending nuclear negotiations. Trump met with Chevron and other energy executives to discuss market stabilization measures if the blockade continues.

Federal Reserve Decision:

The Fed held interest rates steady in an historically divided 8-4 vote—the most dissenting votes since October 1992. Chair Jerome Powell acknowledged elevated oil prices "will push up overall inflation" near-term. Powell confirmed he will remain as a Fed governor after his chairmanship ends in May, with Kevin Warsh expected to succeed him.

Big Tech Earnings:

Four "Magnificent Seven" companies reported after hours with mixed results:

• Microsoft: Beat expectations with strong cloud/AI growth, but shares fell 2% after hours
• Alphabet: Surged 5% on sales beat driven by cloud computing
• Meta: Dropped 6% despite revenue beat due to weak user growth and capex concerns
• Amazon: Results reported but not detailed

Other Movers:

Semiconductor stocks rallied, with the Philadelphia SE Semiconductor index gaining 1.5%. AMD and NXP jumped 11% and 25% respectively on earnings beats. Robinhood declined on missed profit expectations.

Market Implications:

Supply disruptions and Fed divisions signal prolonged inflation concerns, while AI capex scrutiny continues pressuring tech valuations.