Dow Falls Over 400 Points as Yields Surge Above 4.85% to Test Warsh

Markets extended losses Wednesday as the Dow Jones tumbled more than 400 points in afternoon trading, with the index closing near 49,364 after an earlier drop of 322 points. The sell-off accelerated when the 10-year Treasury yield climbed above 4.85%—its highest level in over a year—while the 30-year yield reached 5.18%, the highest since 2007. Rising borrowing costs and sticky inflation concerns triggered a broad risk-off move that sent the S&P 500 and Nasdaq down roughly 0.7-0.8%, pushing the Nasdaq into correction territory and lifting the VIX above 25. The surge in yields is viewed as an early challenge to incoming Fed Chair nominee Kevin Warsh’s inflation-fighting credibility, raising the prospect of further volatility and possible central-bank intervention.