US open: Stocks lower as oil surges, traders await Fed decision

(Sharecast News) - Major indices were in the red at the open on Wednesday as traders weighed rising oil prices and awaited the Federal Reserve's latest interest rate decision.

As of 1500 BST, the Dow Jones Industrial Average was down 0.83% at 52,309.91, while both the S&P 500 and Nasdaq Composite shed 0.12% to 7,419.91 and 24,846.44, respectively.

The Dow opened 437.41 points lower on Wednesday, taking back most of the previous session's gains, as oil prices drew an amount of investor attention, with West Texas Intermediate crude jumping 6.38% to $84.32 a barrel and Brent crude surging 6.55% to $89.60 a barrel after Donald Trump told Fox News that the US planned to start hitting Iran "hard" in response to surprise attacks a day earlier. US Central Command confirmed that Islamic Revolutionary Guard Corps forces had launched "multiple ballistic missiles" on Tuesday in an attempted surprise attack on US troops in the Middle East, all of which were said to have been intercepted.

In the corporate space, Procter & Gamble warned of slower growth in the year ahead, as uneven demand across several categories and a tough consumer backdrop weighed on its latest quarterly performance. The consumer goods giant said FY27 net sales were expected to rise 1% to 3%, a step down from the 3.3% increase delivered in FY26 and, at the midpoint, slightly below analysts' expectations. P&G also guided for adjusted earnings per share of $6.89 to $7.11, with the midpoint coming in just under consensus forecasts. The update followed quarterly sales that missed estimates, with the group citing a "very challenging geopolitical and economic environment" and softer demand in grooming and oral care. Higher food and fuel costs, alongside persistent inflation, continued to pressure lowerincome households, prompting some consumers to trade down to cheaper alternatives.

However, earnings from 'Magnificent Seven' members Microsoft and Meta Platforms will also be in focus on Wednesday, with the tech giants slated to release their latest quarterly figures after the close, as were the likes of Arm, Qualcomm, Starbucks and Robinhood Markets.

Outside of earnings, market participants will also be zeroed-in on the Federal Reserve, with the central bank set to announce its latest monetary policy decision at 1900 BST and chairman Kevin Warsh scheduled to speak at 1930 BST.

Fed funds futures currently imply a 70% chance the central bank will keep rates unchanged at 3.5% to 3.75%, according to CME's FedWatch tool. Treasury yields pushed higher ahead of the FOMC's announcement, with the yield on the benchmark 10-year note up just less than two basis points at 4.629%, as investors broadly expected policymakers to hold steady.

Elsewhere on the macro front, US mortgage applications decreased by 6.4% in the week ended 24 July, according to the Mortgage Bankers Associaiton, more than reversing the prior week's 1.9% increase. Last week's drop came as benchmark mortgage rates increased, with the 30-year fixed contract rising to a one-year high of 6.76%, amid inflationary pressures and evidence that a robust labour market supported expectations that the Federal Reserve rate will look to hike interest rates before the end of 2026. Applications to refinance a mortgage, which are more sensitive to week-to-week interest changes, fell 9.9% week-on-week, while applications to purchase a home fell by 3.6%.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $116.81 3.28%

Dow Chemical Co. (DOW) $29.56 2.56%

Chevron Corp. (CVX) $191.74 2.47%

Coca-Cola Co. (KO) $90.24 2.23%

Amgen Inc. (AMGN) $395.42 1.96%

Salesforce.Com Inc. (CRM) $184.07 0.94%

Apple Inc. (AAPL) $342.36 0.59%

Visa Inc. (V) $368.15 0.55%

Johnson & Johnson (JNJ) $267.00 0.21%

Unitedhealth Group Inc. (UNH) $426.79 0.16%

Dow Jones - Fallers

Procter & Gamble Co. (PG) $144.38 -3.46%

Caterpillar Inc. (CAT) $821.80 -2.81%

Boeing Co. (BA) $217.68 -1.93%

Goldman Sachs Group Inc. (GS) $1,005.60 -1.81%

International Business Machines Corporation (CDI) (IBM) $225.38 -1.52%

Home Depot Inc. (HD) $341.28 -1.24%

Microsoft Corp. (MSFT) $389.75 -1.14%

Nike Inc. (NKE) $42.73 -1.05%

American Express Co. (AXP) $335.83 -0.63%

Intel Corp. (INTC) $87.29 -0.48%

S&P 500 - Risers

Amphenol Corp. (APH) $155.70 8.71%

Incyte Corp. (INCY) $129.01 8.30%

F5 Inc. (FFIV) $405.24 7.01%

Mondelez International Inc. (MDLZ) $65.32 6.62%

Cognizant Technology Solutions Corp. (CTSH) $53.14 6.22%

NetApp Inc. (NTAP) $174.76 6.12%

Expedia Group Inc. (EXPE) $299.03 5.87%

Align Technology Inc. (ALGN) $180.82 5.66%

Biogen Inc (BIIB) $212.96 5.49%

National Oilwell Varco Inc. (NOV) $20.23 4.44%

S&P 500 - Fallers

VF Corp. (VFC) $15.12 -15.92%

Masco Corp. (MAS) $72.62 -11.67%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Skyworks Solutions Inc. (SWKS) $60.06 -6.70%

Boston Scientific Corp. (BSX) $43.25 -6.16%

Fortive Corporation (FTV) $59.71 -6.02%

Unum Group (UNM) $83.12 -5.61%

PPG Industries Inc. (PPG) $112.30 -5.49%

Omnicom Group Inc. (OMC) $82.52 -5.13%

Humana Inc. (HUM) $365.82 -4.87%

Nasdaq 100 - Risers

Incyte Corp. (INCY) $129.01 8.30%

Workday, Inc. (WDAY) $163.31 6.84%

Mondelez International Inc. (MDLZ) $65.32 6.62%

Cognizant Technology Solutions Corp. (CTSH) $53.14 6.22%

Expedia Group Inc. (EXPE) $299.03 5.87%

Trip.com Group Limited (TCOM) $47.13 5.81%

Align Technology Inc. (ALGN) $180.82 5.66%

Biogen Inc (BIIB) $212.96 5.49%

Verisk Analytics Inc. (VRSK) $221.16 4.35%

Liberty Global plc Series A (LBTYA) $10.41 4.34%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Skyworks Solutions Inc. (SWKS) $60.06 -6.70%

Intuitive Surgical Inc. (ISRG) $353.95 -4.25%

Applied Materials Inc. (AMAT) $467.31 -4.03%

Synopsys Inc. (SNPS) $387.01 -3.63%

KLA-Tencor Corp. (KLAC) $187.81 -3.49%

O'Reilly Automotive Inc. (ORLY) $90.27 -3.05%

QUALCOMM Inc. (QCOM) $161.35 -2.23%

Fastenal Co. (FAST) $47.67 -2.17%

CSX Corp. (CSX) $50.63 -1.99%