Dow falls 1,100 points as rates rise after Fed holds steady
Stocks sell off as the Fed holds rates and yields climb, pressuring markets Oil, bonds, and chip shares add to the drop—see what is driving Wall Street
U.S. stocks sold off Wednesday after the Federal Reserve left interest rates unchanged and bond yields moved higher, reinforcing concerns that inflation may stay elevated for longer than investors expected.
The Dow Jones Industrial Average fell 1,129 points, or about 2.1%, while the S&P 500 dropped 1% and the Nasdaq Composite lost 0.9%. The 10year Treasury yield climbed above 4.66%, and the 30year yield rose above 5.18%, near multiyear highs.
Market pressure also came from higher oil prices after President Donald Trump said the U.S. would respond forcefully to attacks in the Middle East. Semiconductor shares extended recent declines, with Micron, AMD and KLA among the notable losers.