Crash is normal now.......

Dow drops 750 points ahead of Fed decision

By John Towfighi

US stocks extended losses Wednesday morning ahead of the Federal Reserve’s decision on interest rates.

The Dow dropped 750 points, or 1.44%. The S&P 500 fell 0.75%, and the tech-heavy Nasdaq sank 1.1%.

The Dow erased its gains from yesterday, when it closed higher by 537 points. The index was set to snap a three-day winning streak.

As tech and AI stocks sold off in recent weeks, investors rotated into other sectors like financials and industrials, helping boost the Dow. But the blue-chip index tumbled on Wednesday as investors dumped stocks across different sectors.

Goldman Sachs (GS) and Caterpillar (CAT) each dropped about 4%, weighing on the Dow. The index is price-weighted, so the larger a company’s share price, the more influence it has. Goldman and Caterpillar have the largest share prices in the index.

All told, the Dow is down just 2% since hitting a record high above 53,000 points in early July.

Meanwhile, weakness in tech and AI continues to weigh on markets: The Nasdaq is down about 9% since its last record high in early June, putting it on the cusp of a so-called correction.

Elsewhere in markets, oil prices rose and Treasury yields moved higher. The US 10-year yield rose to 4.63%.