NewsTradingSentimentCalendarCommunityBriefing
Sign in
Markets LIVE

Dow Drops 1.2% as Fed Hikes Rates and Yields Top 5%

By Markets Desk · 2026-09-16 · Updated 2026-09-16 20:47 UTC
A large, classical stone building with columns and a dome, representing a central bank headquarters.
Illustration: Tradingbird

US equities ended lower for a third consecutive day as the Federal Reserve hiked rates, sending the Dow down over 600 points. However, the tech sector showed resilience, with chip and optical communication stocks bucking the trend and SpaceX climbing sharply on commercial and defensive AI catalysts.

  • According to GN stocks/banks, the broader sell-off was offset by a rally in optical communications and semiconductor names, with Lumentum and Credo Technology both up over 7%. SpaceX also surged 5% on the back of an upcoming Starship commercial mission and a bullish Morgan Stanley outlook, while Apple reportedly plans to re-enter the enterprise server market with a custom-chip device slated for 2029.

    Source: TradingKey

  • US equities closed lower on Wednesday after the Federal Reserve raised its benchmark rate by 25 basis points. The move triggered a sell-off in the Dow Jones Industrial Average and pushed long-term bond yields above key thresholds.

    Source: proactiveinvestors.com
Based on reporting by proactiveinvestors.com and TradingKey, compiled by the Tradingbird desk.

Read next

More in Markets
A modern glass skyscraper reflecting a clear blue sky
Markets · Stock Markets & Equities

Nasdaq Closes Flat at 25,978.42 After Fed Hike

The Nasdaq Composite ended the session nearly unchanged despite the Federal Reserve's first rate increase in three years.

2026-09-16Illustration: Tradingbird
A large, modern glass skyscraper facade reflecting a cloudy sky
Markets · Stock Markets & Equities

Fed Raises Rates by 25 Basis Points to 4.00 Percent

The Federal Reserve increased interest rates by a quarter percentage point. US stock indices showed mixed results immediately following the announcement. Bond yields indicated slight easing. The move was widely expected by analysts.

2026-09-16Illustration: Tradingbird
A modern glass skyscraper facade reflecting a clear blue sky
Markets · Stock Markets & Equities

S&P 500 Rises 0.3% as Fed Hikes Rates and Oil Prices Fall

The S&P 500 gained 0.3% Wednesday, securing its second positive close in eight trading days despite the Federal Reserve's first interest rate increase in three years.

2026-09-16Illustration: Tradingbird

More from the Markets desk

All desk stories