Wall Street stocks fell sharply on Wednesday after the US Federal Reserve left interest rates unchanged despite elevated inflation, while Middle East tensions pushed oil prices higher, according to RTHK.

The S&P 500 dropped 1.5 percent to 7,316, the Dow fell 2.2 percent to 51,594 and the Nasdaq lost 1.7 percent to 24,442. Brent crude futures rose nearly 8 percent to US$90.74 a barrel after US President Donald Trump vowed to hit back hard at Iran after it attacked US bases in Jordan.

Fed Chair Kevin Warsh said the central bank would pursue price stability and return inflation to its 2 percent target, but defended the decision not to raise rates. Meta Platforms fell 4 percent in extended trade after lifting its 2026 capital expenditure forecast to between US$130 billion and US$145 billion, while Microsoft gained 0.6 percent after reporting stronger-than-expected quarterly cloud revenue growth.

The 30-year US Treasury yield touched 5.22 percent, and the dollar weakened against the euro and other major currencies.