US Stocks Plummet as Yields Soar Amid Fed Decision Uncertainty

The US stock market opened lower on September 15th as investors waited for the Federal Reserve's rate decision, which led to a decline in the Dow Jones Industrial Average by around 250 points or 0.5%. The S&P 500 and Nasdaq Composite also slipped about 0.1% each.

The benchmark 10-year Treasury yield briefly climbed above 5%, reaching its highest level since 2007 at 5.041%, before easing back to around 5.004%. This sharp rise in yields has put pressure on equities, as investors assess the outlook for inflation, government spending, and monetary policy.

The Fed's interest-rate decision is now firmly in focus, with a roughly 90% probability of a 25-basis-point rate hike from the current 3.5%-3.75% target range. Investors will also closely watch the central bank's updated economic projections and Fed Chair Kevin Warsh's press conference for clues on the path of interest rates.

Tech stocks rebounded after Monday's AI-led selloff, with Nvidia and Micron Technology gaining around 1%, while Advanced Micro Devices and Intel rose more than 2%. Oil prices remained elevated amid ongoing West Asia tensions, with Brent crude futures rising about 1% to above $107 a barrel.