Dow drops after Powell dims hopes for December rate cut; bond yields jump

Following the Fed’s monetary-policy update, the Dow Jones Industrial Average slipped 0.2% and the 10-year U.S. Treasury yield surged from about 3.98% to over 4.05%. Chair Jerome Powell warned that further rate reductions in December were “far from a done deal,” unsettling sentiment. The market’s reaction was more pronounced in bonds than equities, reinforcing fears of sticky inflation and delayed Fed easing. The messaging from the central bank adds to the backdrop of elevated tech-cap-ex and narrow equity breadth.