Dow Tumbles 2.2% Amid Fed's Interest Rate Decision

The US stock market saw significant losses on Wednesday, with the Dow Jones Industrial Average plummeting 2.2% to 51,594.14.

The S&P 500 fell 1.5% to 7,316.15 and the Nasdaq 100 dropped 2.1% to 27,192.31 as investors digested Microsoft's quarterly earnings and the Federal Reserve's decision to keep interest rates unchanged for the fifth consecutive time.

The Fed's choice to maintain rates raised concerns about inflation running ahead of the curve, with the 10-year Treasury yield jumping 7 basis points to above 4.67% and the 30-year Treasury yield soaring 10 basis points to above 5.2%, its highest level since 2007.

Chipmaker stocks continued their decline, with the Philadelphia Semiconductor Index (SOX) dropping another 5%, heading towards its worst month since 2002 due to rising concerns about the sustainability of the AI boom.