Wall Street Plunges After Bond Market Slams New Fed Chair

A wild and scary day on Wall Street ended with a sharp decline in the S&P 500, which finished 1.5 per cent lower.

The market had surged earlier as the Federal Reserve announced it would hold interest rates steady, but then plummeted after the bond market delivered a negative assessment of new Federal Reserve Chairman Kevin Warsh.

The sharp fall in the S&P 500 doesn't quite capture the drama of Wednesday night's events. The market was expecting some kind of action from the Fed, and when it didn't get it, investors were caught off guard.