Stock market today: Dow, S&P 500, Nasdaq slide as Warsh's Fed edges closer to rate hike
Major US indices fell following the Federal Reserve's decision to keep interest rates unchanged. The Dow dropped 507 points as Chair Kevin Warsh discussed price stability. Markets are reacting to the central bank's first rate decision under Warsh's leadership.
What changed
The Fed has officially held interest rates steady during its first meeting under Kevin Warsh.
Live updates
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US Stocks Slide as Fed Holds Rates Steady Under Chair Warsh
confidence 80%Major US indices fell following the Federal Reserve's decision to keep interest rates unchanged. The Dow dropped 507 points as Chair Kevin Warsh discussed price stability. Markets are reacting to the central bank's first rate decision under Warsh's leadership.
What's confirmed:
- The Federal Reserve decided to hold interest rates steady.
- Kevin Warsh is the Chair of the Federal Reserve.
- The Dow fell 507 points.
Still unconfirmed:
- Doubts regarding an Iran deal contributed to S&P 500 and Nasdaq slips.
- The Nasdaq plunged 4%.
- US stock futures fell while awaiting the May jobs report.
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Fed Holds Rates Steady but Signals 2026 Hike Under Chair Warsh
confidence 100%The Federal Reserve maintained interest rates at 3.50%-3.75% during Kevin Warsh's first meeting as chair. A hawkish dot plot suggests a rate hike will occur in 2026. These signals have shaken market stability.
What's confirmed:
- The Federal Reserve kept interest rates at 3.50%-3.75%.
- Kevin Warsh chaired his first meeting.
- The Fed's dot plot projects a rate hike in 2026.
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US Stock Indices Slide Ahead of Warsh's First Fed Meeting
confidence 70%US stock indices fell Thursday as investors anticipate a Federal Reserve rate hike. Bond yields rose and sentiment weakened. Futures wavered as the market shifted focus from a US-Iran deal to the Fed.
What's confirmed:
- US stock indices slid Thursday amid expectations of a Federal Reserve rate hike.
- Bond yields rose and investor sentiment weakened.
Still unconfirmed:
- US stock futures wavered as investors shifted focus from the US-Iran deal announcement to the Federal Reserve.
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Dow, S&P 500, Nasdaq decline as Fed’s Warsh signals tighter monetary policy
confidence 88%U.S. stock indices slid Thursday amid growing expectations of a Federal Reserve rate hike, with bond yields rising and investor sentiment weakened by Fed Chair Lael Brainard’s predecessor’s hawkish stance. The Dow closed lower, while the S&P 500 and Nasdaq also retreated ahead of the Fed’s policy decision. Tech and biotech sectors showed relative resilience despite broader market losses. Futures trading remains subdued ahead of the Fed announcement.
What's confirmed:
- The Dow Jones Industrial Average closed 500 points lower, the S&P 500 and Nasdaq also slipped as traders reacted to Fed signals.
- Stock futures are little changed ahead of the Federal Reserve’s rate decision, with markets bracing for a potential hike.
- Fed Chair Warsh’s decision not to provide a ‘dot plot’ projection for future rates heightened uncertainty, reinforcing expectations of tighter policy.
- Tech and biotech stocks showed gains even as broader market indices declined, reflecting sector-specific resilience.
- Bond yields surged in response to the Fed’s perceived shift toward a more restrictive monetary stance.
Still unconfirmed:
- Warsh’s omission of a rate-path view may signal an imminent aggressive rate hike, though no official confirmation exists.
- SpaceX stock (SPCX) is reported to have turned lower amid broader market weakness, though no trading data was provided.