India, Sept. 17 -- Stock markets experienced a precipitous decline on Wednesday as Federal Reserve Chairman Kevin Warsh delivered an unexpectedly hawkish assessment of persistent inflation pressures during his press conference following the central bank's decision to raise interest rates for the first time in more than three years.

The Dow Jones Industrial Average fell 751 points, or 1.5 per cent, reversing earlier session gains within minutes of Warsh's remarks, whilst the S&P 500 retreated 0.5 per cent and the Nasdaq Composite declined 0.4 per cent as investors reassessed their expectations for monetary policy tightening throughout 2026 and beyond.

The sharp selloff represented a dramatic intraday reversal that underscored investor an...