# Dow sinks 1,100 points after Fed holds off on hike

- URL: https://talkfuse.com/story/dow-sinks-1100-points-after-fed-holds-off-on-hike/
- Published: 2026-07-29T21:34:58+00:00
- Updated: 2026-07-30T00:35:06+00:00
- Original publisher: The Hill (publisher lean: Right)
- Original article: https://thehill.com/business/5998165-stocks-fall-fed-steady/
- Topics: Business, Economy, Government, Markets, Politics

## Key points

- Fed signals fewer 2025 rate cuts than markets expected
- Dow loses more than 1,100 points
- Higher-for-longer rates unsettled investors

## Summary

US stocks fell sharply after the Federal Reserve cut interest rates but signalled that it may make fewer reductions in 2025 than investors had expected. The reaction reflected concern that borrowing costs could remain higher for longer, limiting support for businesses, consumers and share prices.

The Fed lowered its main rate by a quarter of a percentage point, its third cut since September, taking the target range to 4.25%–4.50%. It projected only two further quarter-point cuts in 2025, compared with four previously forecast; the Dow Jones Industrial Average dropped 1,123 points, or 2.6%, while the S&P 500 fell 2.9% and the Nasdaq declined 3.6%.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.