US Stocks Wobble as Chip Selloff Tests Nerves Before Fed Decision

US stocks turned choppy ahead of the Federal Reserve's July 29 policy decision, with strength in the Dow Jones Industrial Average offset by weakness in technology as a selloff swept through semiconductor shares. The Dow jumped hundreds of points in one recent session even as the Nasdaq Composite struggled, reflecting a rotation away from the chipmakers that had powered much of the market's advance this year. The pullback in semiconductors highlighted investor sensitivity to stretched valuations after a strong first half, in which major indexes repeatedly set records on optimism about artificial intelligence spending and resilient corporate earnings. With the Fed widely expected to hold rates steady but oil prices climbing on renewed Middle East conflict, traders are wary of any signal that inflation could delay rate relief. The absence of updated economic projections at this meeting leaves markets to parse the policy statement and Chair Kevin Warsh's press conference for direction. Beyond the Fed, investors are bracing for a dense stretch of data, including a first read on second-quarter economic growth and the central bank's preferred inflation gauge, along with a heavy slate of corporate earnings, all of which could drive sharp moves in the days ahead.