Dow Falls 1.7% on Fed's 25-Basis-Point Hike as AI Safety Fears Jolt Stocks
Updated
Updated · CNBC · Sep 19
Dow Falls 1.7% on Fed's 25-Basis-Point Hike as AI Safety Fears Jolt Stocks
3 articles · Updated · CNBC · Sep 19
Summary
The Dow lost 1.7% for the week—its third straight weekly decline—while the S&P 500 slipped 0.08% and the Nasdaq still gained 0.7% after a volatile stretch.
A 25-basis-point Fed hike lifted the benchmark rate to 3.75%-4%, and Chair Kevin Warsh's inflation warning pushed yields back to 5%, hitting banks and other rate-sensitive shares.
AI safety concerns triggered an early sell-off in chipmakers and data-center stocks after calls to slow frontier-model development, but much of the group recovered as investors bet the AI buildout would continue.
Oil added to the pressure after WTI and Brent hit their highest since mid-May on Middle East supply worries, weighing on transport and industrial names sensitive to fuel costs.
Salesforce offered a counterpoint at Dreamforce, forecasting more than $63 billion in fiscal 2030 revenue and arguing AI is a growth driver for enterprise software rather than a threat.