Topline
The Dow Jones Industrial Average tumbled to its worst day of the year Wednesday, falling over 2% after the Federal Reserve left interest rates unchanged as central bank officials have appeared conflicted on how to handle mounting inflation concerns.
People walk by the New York Stock Exchange (NYSE) on July 23, 2026 in New York City.
Photo by Spencer Platt/Getty Images
Key Facts
The Dow closed down 2.2%, falling 1,153 points to its lowest point in over four weeks.
Despite the drop, the Dow is up 5.1% in the last six months of trading and has completely recovered from its slump in March that was informed by the war in Iran and rising oil prices.
The Federal Open Market Committee on Wednesday held interest rates between 3.5% and 3.75% in a 9-3 vote, conflicting with a unanimous vote last month to maintain interest rates, with the three dissenting votes supporting a 0.25% rate hike.
The committee’s statement provided a rosy picture of the economy, saying economic activity was “expanding at a solid pace” despite the Iran war.
Tangent
The S&P 500 and Nasdaq also slid Wednesday, falling 1.5% and 1.7%, respectively. Both indexes are up at least 5% since January.
Big Number
7.3%. That is how much the Dow has risen since the start of the year. Despite lows near the 45,100 mark in March, the index has jumped to and generally remained about 51,000 points since mid-June.
This is a developing story. Check back for updates.
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