U.S. stocks fell sharply after the Federal Reserve left its benchmark interest rate unchanged and long-term Treasury yields surged amid renewed inflation concerns.
The Dow Jones Industrial Average, which tracks 30 blue-chip stocks, closed down 2.19% at 51,594.14. The S&P 500 fell 1.52% to 7,316.15, while the tech-heavy Nasdaq Composite dropped 1.74% to 24,442.94.
The decline followed the Fed’s decision to keep its benchmark rate at 3.5% to 3.75%. After the decision, U.S. long-term Treasury yields rose sharply, reflecting investor concern about inflation and higher borrowing costs.
At about 3:34 p.m. Eastern time, the yield on the 30-year U.S. Treasury bond stood at 5.21%, up 0.1 percentage point from the previous session and the highest level since July 2007, before the global financial crisis.
