US stocks tumbled Wednesday as traders anticipated a Federal Reserve rate hike, with policymakers projecting rising interest rates later this year. New Fed Chair Kevin Warsh emphasized taming inflation, shifting sentiment from expected rate cuts. This hawkish tilt led to significant market declines across major indices.

U.S. stocks dropped on speculation the Federal Reserve may raise interest rates this year to keep a lid on inflation.

U.S. stock indexes opened higher on Wednesday, with chip stocks rebounding ahead of the Federal Reserve's first interest rate decision under new Chair Kevin Warsh. The Dow Jones…