US Stock Markets Drop Sharply Following Federal Reserve Rate Hike and High Inflation Warnings

US stock markets suffered a major sell-off as the Federal Reserve announced a new interest rate hike. The Dow Jones fell by 700 points, and the S&P 500 also recorded sharp slides. Federal Reserve official Warsh stated that inflation remains too high, which triggered market anxiety. Even though US stock futures showed a slight rise later, Asian stocks are expected to open lower as a direct result of these US market movements. The US dollar also jumped significantly in value following the policy announcement.