Dow Plunges Over 1,100 Points as Fed Holds Rates

The Dow Jones Industrial Average plummeted by over 1,152 points on Wednesday, its biggest one-day decline since April 2025, as investors reacted negatively to the Federal Reserve's decision to keep interest rates unchanged. The S&P 500 and Nasdaq Composite also dropped, falling 1.5% and 1.7%, respectively.

The Fed kept its benchmark interest rate at 3.50%-3.75%, despite three members of the Federal Open Market Committee favoring a quarter-percentage-point increase. This decision sent Treasury yields soaring, with the benchmark 10-year Treasury yield rising more than 6 basis points to above 4.66% and the 30-year Treasury yield climbing over 10 basis points to above 5.2%, its highest level since 2007.

Rising oil prices added to inflation concerns after geopolitical tensions in the Middle East intensified, with West Texas Intermediate crude settling more than 6% higher at $84.46 per barrel. This reinforced investor concerns that inflationary pressures could remain elevated, increasing the likelihood of further monetary tightening.