{
  "id": 7591001,
  "title": "Dow Jones Industrial Average slides as yields beat the Fed to tomorrow's hike",
  "url": "https://urgent.news/2026/09/15/dow-jones-industrial-average-slides-as-yields-beat-the-fed-to",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T16:24:29.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/dow-jones-industrial-average-slides-as-yields-beat-the-fed-to-tomorrows-hike-202609151624"
  },
  "original_language": "en",
  "account": "On Wednesday, the Dow Jones Industrial Average slipped to just under 52,000 points, losing about 450 points, a day before the Federal Reserve's first expected rate hike since July 2023. Investors' futures market predictions indicated a 92.5% chance that the Fed would raise rates by a quarter of a percent.\n\nThe rate that caught the attention of the Dow's companies and their customers was the yield on the 10-year Treasury, the cost they incur to borrow for a decade. This yield reached 5.04% on Tuesday, the highest level since 2007, and it serves as the benchmark for loans that the firms and their clients obtain. The Federal Reserve determines the other rate, which banks pay for overnight loans. On Wednesday, the Fed was anticipated to raise its rate from 3.50-3.75% to 3.75-4.00%.\n\nThe 10-year yield rose for four straight days and had nearly increased by a third in the past four weeks. However, the Federal Open Market Committee had not yet voted. This disagreement affected the index. The quarter-point rate hike primarily impacted banks, while the third of a percent affected their customers, who have been dealing with this rate since August. On Wednesday, the Fed announced its decision with a statement and a press conference, while the bond market did not provide any such announcements.\n\nThe Treasury Department announced on August 19 that it would double its Treasury buybacks, increasing the amount from $2 billion to $4 billion. Later, on September 9, the department raised its weekly buyback operation to $6 billion. When the Treasury did not pay the prices requested, the September 10 operation bought back only $5.19 billion of the $10.49 billion offered for sale. Treasury Secretary Scott Bessent acknowledged that the Treasury market was in good shape, but later softened his stance.\n\nThe 10-year yield reached 5.04% on Tuesday, the day before the House Financial Services Committee hearing. The rate that the index's customers pay for loans was the primary target of the increase. The hike comes at a time when the economy is experiencing a contraction, as indicated by the New York Fed's factory survey, which fell to 7.6 on Tuesday, below the expected 14.75 and 20.6 in August. The upcoming Philadelphia survey is predicted to drop further from 47.4 to 30.5. These surveys inquire about factories' order situations, which caterpillar (CAT), a tenth of the index by share price, and 3M (MMM), among others, sell into. In August, consumer prices increased by 3.4%, with fuel contributing significantly to the rise. This inflation is the reason for the Fed's rate hike. Saudi Arabia has halted the pipeline carrying its crude oil through the Strait of Hormuz due to a strike it blames on Iran-backed groups, with repair estimates exceeding a month. The vote took place in the afternoon, with the forecasted Fed rate at 4.00% from 3.75% at 18:00 GMT on Wednesday.\n\nThe decision will take effect on Thursday, with retail sales forecast to rise by 0.8%, after a 0.6% decline in July. The base, which excludes fuel, cars, and building materials, fell by 0.4% in July. Industrial production is expected to increase by 0.3% on Thursday. Resistance levels for the index are currently just under 52,400, the first hurdle, the 50-day Exponential Moving Average (EMA) near 52,700, and 53,000. Support is found at today's low near 51,900, which is already below Thursday's level. The support level at 51,500 and the next round number at 51,000 are critical. The market sentiment is bearish due to the 50-day EMA near 52,700 serving as a cap, and the late-July base just above 51,500 being the first objective, followed by 51,000.",
  "summary": "The Dow Jones Industrial Average trades just under 52,000, down around 450 points, a day before the Fed's first expected hike since July 2023. Bets in the futures market put the odds of a quarter-point at 92.5%, so Wednesday's vote is not the news.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}