[New York Stocks] All Major Indexes Fall Amid Soaring Oil Prices... Eyes on FOMC Results

International oil prices jump over 6%
SK hynix ADR remains weak

On the 28th (local time), ahead of the Federal Open Market Committee (FOMC) results, all three major U.S. stock indexes are declining amid a sharp surge in international oil prices.

As of 9:35 AM at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow) is down by 363.13 points (0.69%) to 52,348.13. The S&P 500 index, which focuses on large-cap stocks, has fallen by 14.21 points (0.19%) to 7,414.57. The tech-heavy Nasdaq index is down 29.51 points (0.12%) to 24,847.35.

New York Stock Exchange. New York, USA – Special Correspondent Yoonju Hwang

The previous day, Iran launched several ballistic missiles toward a U.S. military base in Jordan, and the U.S. Central Command stated that all were intercepted. Subsequently, U.S. President Donald Trump told a Fox News reporter that the United States "will take strong action" in response to Iran's surprise attack, leading to renewed tensions in the Middle East.

As a result, international oil prices have surged. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for September delivery soared 6.6% from the previous session to $84.49 per barrel. On the ICE Futures Exchange, Brent crude for September delivery is up 6.8% from the previous session at $89.82 per barrel.

The semiconductor sector is showing weakness. CNBC reported that concerns about returns on artificial intelligence investments and growing anxiety over intensified competition with China have contributed to a four-day losing streak, bringing a nearly 7% weekly decline.

By stock, Micron dropped 0.72%, Nvidia fell 0.52%, TSMC was down 1.37%, and AMD fell 1.77%. The iShares Semiconductor ETF (SOXX) is down 0.12%.

SK hynix ADR is down 0.86% compared to the previous trading day. Despite strong earnings, SK hynix failed to meet analysts’ expectations, causing its ADR listed on the U.S. stock market to fall 1.6% in pre-market trading and to remain weak after the market opened.

Consumer goods company Procter & Gamble (P&G) saw its stock decline more than 2% in pre-market trading after its recent quarterly sales failed to meet estimates, and it is down 3.28% after the market opened.

The market is focusing on the Federal Reserve's interest rate decision and Chairman Kevin Warsh’s scheduled press conference later in the day. According to CME’s FedWatch, federal funds futures traders estimate there is a 70% probability that the central bank will keep interest rates unchanged at the current target range of 3.5%–3.75%.

Julia Hermann, global market strategist at New York Life Investment Management, said, "I think the market is placing too much weight on inflation risk and too little on the economic fallout from further tightening," adding, "A more hawkish communication stance is more likely to challenge the current narrow market leadership rather than the market as a whole."

This content was produced with the assistance of AI translation services.