Dow Plunges Over 1,100 Points After Fed Keeps Interest Rates Unchanged

U.S. stock markets plummeted on July 29 after the Federal Reserve announced it would keep interest rates unchanged, defying growing inflationary pressures.

The Dow Jones Industrial Average fell by over 1,100 points, its worst day since April 2025 when President Donald Trump announced his tariffs.

The S&P 500 index dropped by 1.5% and the technology-laden Nasdaq index declined by 1.7%, both affected by the news of steady interest rates from the U.S. central bank.

The Fed's decision was a 9-3 vote in favor of maintaining its key Fed Funds Rate at a range of 3.50% to 3.75%. Three members of the Fed's board dissented, voting to raise interest rates instead.