US stocks tumble amid surging bond yields and potential government shutdown

• US stocks plunged on Thursday as bond yields surged following the Fed's policy meeting.
• The 10-year US Treasury rate jumped to a high of 4.49%, its highest level since October 2007.
• A potential government shutdown also could be imminent as the House went on recess after failing to pass a funding bill.

US stocks plunged on Thursday, extending their week- and month-long decline, as bond yields surged following the Federal Reserve's meeting on Wednesday.

The 10-year US Treasury rate jumped to a high of 4.49% on Thursday, representing its highest level since October 2007, while the 2-year Treasury yield jumped to its highest level since 2006.

Fed Chairman Jerome Powell telegraphed that inflation still remains a top concern and the Fed's "dot plot" forecasts signaled only two rate cuts in 2024, whereas the market expected closer to three or four cuts next year.

"He underscored numerous times that while the Fed remains data dependent and can proceed carefully, but another rate hike remains on the table as the Fed is seemingly wedded towards restoring price stability," LPL Financial strategist Quincy Krosby told Insider.

Meanwhile, a potential government shutdown could be imminent after the Republican-controlled House of Representatives went on recess after failing to pass rules for a defense funding bill, dimming hopes for an overall budget deal to keep the government open. A potential shutdown could occur in October.

Here's where US indexes stood at the 4:00 p.m. closing bell on Thursday:

• S&P 500: 4,330.00, down 1.64%

• Dow Jones Industrial Average: 34,070.42, down 1.08% (37046 points)

• Nasdaq Composite: 13,223.99, down 1.82%

Here's what else is going on today:

• Jobless claims fell to 201,000 last week, the lowest reading since January and below economist estimates of 225,000, signaling the labor market remains tight.
• Nvidia's stellar 2023 rally flamed out this month, with the semiconductor giant shedding nearly $180 billion in market value as its stock price feels the full force of the "September effect."
• China is probing the activities of hedge funds that use quantitative trading strategies to bet against its struggling stock market.
• Investors should brace for another interest-rate increase by the Federal Reserve, with the recent surge in oil prices likely to rekindle inflation pressures, billionaire investor Jeff Gundlach said.
• Billionaire investors Ken Griffin and Bill Ackman met with Volodymyr Zelenskyy as Ukraine looks to rebuild its economy with private-sector funds.
• A $10,000 bill issued by the US Treasury in 1934 just sold in an auction for $480,000, representing a record for the high-denomination bill.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil fell 0.03% to $89.63 a barrel. Brent crude, the international benchmark, dropped 0.27% to $93.28 a barrel.
• Gold fell 1.36% to $1,940.40 per ounce.
• The yield on the 10-year Treasury bond jumped 14 basis points to 4.49%.
• Bitcoin fell 1.91% to $26,608.