S&P 500 futures are flat as oil prices jump, traders brace for Fed decision: Live updates - CNBC
U.S. stock markets experienced a significant decline as investors reacted to the Federal Reserve's decision to hold interest rates steady. Concerns over inflation and rising oil prices, fueled by geopolitical tensions in the Middle East, further pressured the market.
Why it matters
Market volatility and interest rate decisions directly impact global economic stability and investor confidence.
Stocks tumbled for a myriad of reasons Wednesday, but mostly because the bond market signaled the Federal Reserve could be falling behind on the inflation fight as the central bank chose to keep interest rates unchanged.
The Dow Jones Industrial Average closed 1,153.18 points lower, or 2.19%, at 51,594.14 for its worst decline since April 2025. The S&P 500 slid 1.52% to end the day at 7,316.15. The Nasdaq Composite fell 1.74% to 24,442.94, ending the session more than 10% off its all-time high.
The Fed kept to the sidelines in its latest rate decision , and the bond market responded with the 10-year Treasury yield jumping 7 basis points to above 4.67%. The 30-year Treasury yield soared 10 basis points to above 5.2%, hitting its highest level since 2007.
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