Following the Fed, stocks decline and 30-year bond yields rise – US Market Wrap

Stocks closed substantially lower as concerns about inflation drove longer-term bond yields to a nearly two-decade high after the Federal Reserve kept interest rates unchanged despite a rebound in oil prices.
A spike in Middle Eastern hostilities pushed Brent crude above $90, raising concerns about inflationary pressures. The S&P 500 sank 1.5%, dragged down by a selloff in chipmakers. The Nasdaq 100 suffered a technical correction, extending its decline from a record to almost 11%. In the Treasury market, the 30-year yield reached its highest level since 2007. Those with two-year debt retreated.
Fed Chair Warsh underlined that officials’ decision to keep interest rates constant was not a sign of stagnation at the central bank, which he emphasized is committed to combating inflation.
The FOMC voted 9-3 to maintain the benchmark federal funds rate in the 3.5% to 3.75% range. Fed officials Logan, Hammack, and Kashkari all dissented in favor of raising rates by a quarter percentage point.
In the late hours, Microsoft’s cloud unit reported a larger-than-expected increase in sales, indicating that the company’s computer infrastructure and artificial intelligence services continue to gain traction with businesses.