U.S. stocks sell off on higher FOMC rate outlook

2026-06-17

Stocks lead losses on FOMC outlook

In the U.S. stock market on the 17th, the Dow Jones Industrial Average briefly fell more than 200 points from the previous day. Selling intensified after the median of Federal Open Market Committee participants' policy rate projections shifted to one rate hike by the end of 2026.

Volatile trading around the announcement

The Dow had been trading around 160 points higher than the previous day's close until just before the FOMC announcement, but turned lower afterward. As of 2:20 p.m., it was trading near the previous close, with the market focusing on Federal Reserve Chair Waller's remarks at his news conference.

Bond yields also rise

In the U.S. Treasury market, yields were under upward pressure across maturities. The 2-year note yield, which is sensitive to monetary policy, briefly rose 0.10 percentage point from the previous day to 4.15%. Bond prices fell.

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