Dow drops 507 points after Fed projections point to at least one rate hike in 2026

Nine of the Federal Reserve’s 18 policymakers expect at least one interest-rate increase in 2026, stoking concerns that monetary policy could turn more restrictive. The Dow fell 507 points, while the Nasdaq dropped 1.4% and the S&P 500 slid 1.2%. Treasury yields rose, with the 10-year at 4.48% and the 2-year at 4.20%. In his first press conference, Chair Kevin Warsh hinted at ending forward guidance and stressed data-dependent decisions, adding to near-term uncertainty.