U.S. stock markets are experiencing a notable sell-off following the Federal Reserve’s policy announcement under new Chair Kevin Warsh.
The Fed held the federal funds rate steady at 3.5%-3.75%, as widely expected. However, the tone was perceived as hawkish: roughly half of FOMC participants now project at least one rate hike later in 2026 amid persistent inflation concerns, shifting away from earlier easing expectations. This led to immediate negative market reactions, with broad selling across major indices.
Dow Jones Industrial Average (DJIA) – Down 500+ points ~.97% trading 51,493, after touching a record close 52,000 the prior day.
S&P 500 – Down ~1.2% – trading 7,410. (It gave back recent gains amid the hawkish Fed projections.)
Nasdaq Composite – Down 350+ ~1.3%, underperforming due to heavier pressure on technology and growth stocks.
Post-Fed reaction dominated, with investors repricing for potentially tighter policy (or fewer cuts) amid inflation risks.
SpaceX trading $191, down roughly ~5% on the day.
