Financial markets experienced a volatile session as the Federal Reserve held interest rates steady with a hawkish 9-3 vote, fueling inflation concerns and contributing to a 2% decline in the Dow. Investor sentiment was further weighed down by earnings disappointments, notably a 10% slide in Meta shares due to rising costs and a 15% drop for Carvana despite strong sales figures. Geopolitical tensions surged alongside these market moves; the President pledged retaliatory strikes against Iran following reported attacks on U.S. forces, while the Senate advanced legislation targeting purchasers of Russian oil. Domestically, federal focus remained on emerging technology and safety, with Senate committees holding hearings on AI risks and the Department of Health and Human Services announcing a ban on funding for gain-of-function research.