Wall Street’s Worst Day Since April 2025: Did the Fed Just Lose the Market?

Wall Street suffered a broad risk-off selloff after the Federal Reserve held rates steady, with the Dow Jones falling 1,153 points (2.19%) for its worst daily drop since April 2025. The S&P 500 and Nasdaq also declined sharply. Markets interpreted the Fed’s decision as insufficiently hawkish versus rising inflation pressures, especially after three FOMC members dissented in favor of a rate hike. Treasury markets signaled growing skepticism about the Fed’s stance: the 10-year yield rose 7 basis points to above 4.67%, while the 30-year yield climbed 10 basis points to over 5.2%, the highest since 2007. The article frames the move as a credibility test for the Fed, with analysts warning that investors may be underpricing inflation risk. Rising oil prices, up more than 6% on Middle East tensions, added to the inflation উদ্বога. The main market impact is a jump in yields, pressure on equities, and a more cautious outlook ahead of the September Fed meeting.