Markets reel as Fed holds rates steady and Iran hits a key Qatar gas hub

Hello, this is Dylan writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

U.S. markets saw sharp declines on Wednesday, as inflation data and Fed signals added to market distress over Iran. There were some bullish AI signs, however.

The Dow Jones Industrial Average on Wednesday fell more than 750 points to hit a new low for the year, with the index on pace for its worst month since 2022. 

That came after the Federal Reserve held rates steady. Policy makers signaled inflation concerns and uncertain impacts amid the Iran war, dashing hopes for swift cuts. 

Meanwhile, Fed Chair Jerome Powell says he will continue to serve as head of the central bank if his nominated successor, Kevin Warsh, is not confirmed by the time his term is up in May. 

The Fed will continue to monitor factors such as energy prices, with Iran missiles inflicting extensive damage on Qatar’s Ras Laffan natural gas facility on Wednesday, further threatening energy supply disruptions.

In an attempt to stabilize oil markets, President Donald Trump issued a 60-day waiver of the Jones Act — a longstanding shipping law that requires the transport of goods between U.S. ports to be conducted by American vessels.

Gas prices aren’t the only ones rising; memory chip prices are also surging amid intense AI demand. That saw American memory chipmaker Micron’s revenue almost tripling in the latest quarter.

Demand for artificial intelligence is also boosting companies in China, with tech giant Tencent reporting full-year revenue that topped analyst predictions, as it continues to ramp up AI investments.

In another bullish sign for AI in China, policymakers and tech companies have been pushing widespread adoption of the open-source AI agent OpenClaw. Amid market excitement for OpenClaw, shares of some of China’s “AI Tigers” surged on Wednesday. 

— Dylan Butts