US Stocks Slip After the Fed Hikes Interest Rates and Hints More Increases May Be on the Way
The S&P 500, Dow and Nasdaq slipped as traders priced in more hikes, with CME Group data showing a 38% chance of two more this year.
- On Wednesday, the Federal Reserve raised interest rates for the first time in three years, prompting U.S. stocks to fall after initially holding modest gains in New York.
- Policymakers acted to curb high inflation, which remained above the Fed's 2% target for months. Fed Chairman Kevin Warsh stated, "Todays action starts to show were serious about this."
- The Dow Jones Industrial Average fell 1.2% and the 500 index declined 0.4%, while the 2-year Treasury yield jumped to 4.73% from 4.67% late Tuesday.
- Bank stocks fell sharply as the narrowing gap between short and long-term rates reduced profit margins. Wasif Latif, chief investment officer at Sarmaya Partners, warned the market may be "overpricing too many hikes."
- Fed forecasts suggest rates could reach 4.1% by year-end, up from the current 3.75% to 4% range. Traders are betting on a 38% probability of further increases by December, according to CME Group data.
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20 Articles
Stock prices fell significantly in afternoon trading on US stock exchanges after the central bank announced its first interest rate hike in three years.
The US Federal Reserve Fed is raising interest rates for the first time in more than three years out of concern for inflation. Further steps are ahead, including in Europe. The consequences for the global economy are far-reaching.
U.S. stocks slip after the Fed hikes interest rates
NEW YORK — U.S. stocks slipped Wednesday after the Federal Reserve hiked its main interest rate for the first time in three years and suggested more may be ahead as it tries to get the nation’s high inflation under control.
Chicago Tribune
US stocks slip after the Fed hikes interest rates and hints more increases may be on the way
U.S. stocks slipped Wednesday after the Federal Reserve hiked its main interest rate for the first time in three years and suggested more may be ahead as it tries to get the nation’s high inflation under control.
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