Stocks Sell Off Late As Fed, Inflation Uncertainty Fester

All three major indexes closed in the red today, as inflation uncertainty clouded investor sentiment. The Dow snapped its record-setting streak, pivoting sharply lower from an intraday all-time high after the Fed kept interest rates steady. The S&P 500 and Nasdaq also closed at their session lows.

New Fed Chair Kevin Warsh declined to give a dot plot projection of future rate hikes, but did signal a "new chapter" for the central bank regarding how the Fed communicates. The rather hawkish rhetoric sent bond yields spiking. Chances of a rate hike are at 48.4% for the September meeting, per CME's FedWatch tool. 

Oil, Gold Respond to Fed Decision

Crude prices were mostly flat today, as investors pore over the U.S.-Iran memo of understanding and assess its impact on black gold. Crude inventories also showed a 10th consecutive weekly decline. July-dated West Texas Intermediate (WTI) dropped 1% to close at $75.27 per barrel.

Gold futures cratered after the Fed decision and subsequent rhetoric. August-dated gold futures shed 0.8% were last seen at $4,317.80.