A sharp rise in long-term Treasury yields following the Fed’s decision pressures equities, dragging major indices lower.
The Federal Reserve’s decision to hold rates steady, coupled with limited guidance from Chair Warsh, triggered a steepening Treasury curve. The 30-year yield surged +11.2bps to 5.20%, its highest level since 2007, weighing on risk assets.
The S&P 500 fell 1.52%, marking its worst day in seven weeks, while the NASDAQ 100 dropped 2.06% to enter correction territory, down 11.3% from its June peak. Tech stocks led declines, with the Philly semiconductor index plunging 5.33%.
European markets saw mixed performance, with the FTSE 100 gaining 0.34% while the Stoxx 600 and CAC 40 declined. Asian equities showed varied reactions in early trading.