Fed rate hike fails to calm troubled markets as Dow falls 600 points. Expect more sharp swings in stocks and bonds.

The Federal Reserve's latest interest-rate hike failed to steady financial markets on Wednesday, triggering a sharp reversal across equities and fixed income. The Dow Jones Industrial Average dropped approximately 600 points, or 1.21%, as the central bank reinforced its aggressive stance to curb persistent inflation. While major indexes initially experienced a brief relief rally after the policy decision and new economic projections were released, selling pressure quickly resumed and pushed benchmark gauges deeper into negative territory. Bond markets also faced continued turbulence, with the 10-year U.S. Treasury yield hovering above 5.02%. Investors had anticipated that the policy action might restore confidence in volatile credit markets, but hawkish signals from Fed leadership deepened fears of sustained restrictive financial conditions. Broader markets, including the S&P 500 and energy commodities, closed notably lower as market participants braced for heightened volatility and extended swings across asset classes in the near term.