Dow dives, S&P 500 trades lower in volatile market following Fed decision: Live updates
Here's what's trending across the USA right now:
Stocks tumbled for a myriad of reasons Wednesday, but mostly because the bond market signaled the Federal Reserve could be falling behind on the inflation fight as the central bank chose to keep interest rates unchanged.
Adding to this, The Dow Jones Industrial Average closed 1,153.18 points lower, or 2.19%, at 51,594.14 for its worst decline since April 2025. The S&P 500 slid 1.52% to end the day at 7,316.15. The Nasdaq Composite fell 1.74% to 24,442.94, ending the session more than 10% off its all-time high.
Meanwhile, The Fed kept to the sidelines in its latest rate decision , and the bond market responded with the 10-year Treasury yield jumping 7 basis points to above 4.67%. The 30-year Treasury yield soared 10 basis points to above 5.2%, hitting its highest level since 2007.
Notably, Three officials wanted a hike, but the Fed still stood pat on rates. And Fed Chairman Kevin Warsh's tough talk failed to convince the bond market.
As per the latest buzz, "I want to stress, of course, that decisions by this committee matter a great deal, and where necessary and appropriate, we will not hesitate to act," Warsh shared during his press conference.
In further updates, "If you really want to get to 2%, I think you have to raise interest rates," shared DoubleLine's Jeffrey Gundlach on CNBC's " Closing Bell ," noting that the jump in yields after the Fed decision was sending a message to Warsh.
On top of that, "The long bond yield went up significantly after the press conference because the bond market vigilantes are saying, 'If you really want us to believe your rhetoric, you've got to start acting,'" shared Gundlach.
Adding to inflation concerns was a jump in oil prices after President Donald Trump told a Fox News reporter that the U.S. will be hitting Iran "hard" in response to surprise attacks on troops in the Middle East. West Texas Intermediate crude futures advanced more than 6% to settle at $84.46 a barrel.
Source: CNBC