The Dow Jones Industrial Average dropped 1.56%, while the S&P 500 fell 0.51% and the Nasdaq Composite lost 0.37% after the central bank left rates unchanged.
US stocks extended losses after the Federal Reserve kept interest rates unchanged, a decision that appeared to weigh on risk sentiment across major equity benchmarks. The Dow Jones Industrial Average fell 1.56%, the S&P 500 declined 0.51%, and the Nasdaq Composite slipped 0.37%. Markets often react sharply to Fed rate decisions because borrowing costs influence corporate valuations, financing conditions and investor appetite for risk assets.