Dow Drops 1,153 Points Amid Inflation Fears

The US stock market experienced its largest decline in nearly two years as the Federal Reserve kept interest rates unchanged, fueling inflation concerns.

The Dow Jones Industrial Average plummeted by 1,153.18 points to 51,594.14, while the S&P 500 and Nasdaq Composite fell by 112.63 points and 433.97 points respectively.

The 30-year US Treasury yield surged above 5.2% for the first time since 2007, further exacerbating inflation worries.

Fed Chair Kevin Warsh emphasized that there would be 'no softened inflation target', but investors interpreted this as a hawkish tone and sold Treasuries in response.