Dow Loses 757 Points as Fed Hikes Rates for First Time in Three Years
U.S. stocks closed mixed after the Fed’s first rate hike in three years, with the Dow falling 630 points and the S&P 500 dipping 0.44%, though the Nasdaq stayed nearly flat. The session saw a sharp divergence where AI and chipmakers rallied on strong positioning, while banks, energy, and crypto stocks struggled under the weight of elevated borrowing costs and hawkish Fed guidance.
GN stocks/nasdaq reports the Dow’s decline has narrowed to 630 points, with the S&P 500 and Nasdaq holding relatively firm as AI infrastructure and semiconductor stocks posted significant gains against the broader sell-off. The 10-year Treasury yield remains above 5% following the hike, while financials and crypto-linked names led the losses.
Source: investinglive.comThe Motley Fool notes that the FOMC’s 12-0 vote to lift rates to the 3.75%-4.00% range was driven by stubborn inflation and a resilient labor market, with Chair Kevin Warsh declining to offer forward guidance or address presidential pressure to lower borrowing costs. The report highlights that 16 of 18 policymakers expect at least one more hike by year-end, signaling continued tightening despite the market's initial drop.
Source: The Motley FoolU.S. equity markets reversed early-session gains after the Federal Reserve raised its benchmark interest rate. The move signals a renewed focus on curbing persistent inflation, with officials warning that further increases are likely.
Source: yakimaherald.com
