US Stocks Plummet as Inflation and Interest Rate Fears Mount

The US stock market took a hit on Wednesday as inflation and interest rate concerns weighed heavily on investors' minds.

Major indices, including the S&P 500 and Dow Jones Industrial Average, closed lower, with technology stocks leading the decline.

The Federal Reserve's Michael Barr stated that economic growth is strong, but inflation is above target and not clearly trending towards it in a timely manner. He noted that risks to achieving the inflation target have increased while risks to the labor market have receded.

Barr added that 'further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.' The US 10-year Treasury yield jumped to 5.135 percent, its highest level since 2007.