U.S. stock markets close lower after Fed signals more hikes are ahead
U.S. stocks closed lower after the Federal Reserve announced it would keep interest rates steady but hinted that more hikes were on the way and that rates may remain higher for a more extended period.
The officials at the Central bank said they would hold interest rates steady at their highest rate in 22 years but predicted in their “dot plot” that there would be at least one more hike this year and that cuts in rates wouldn’t begin until June of 2024, later than previously signaled.
Markets found it hard to get the news as Fed Chair Jerome Powell said in a press conference that the Fed would “proceed carefully” in raising futures and that a recession remained a possibility.
Yields on the US 2-year Treasury yield increased to their highest levels since 2006 as investors worried about higher rates.
Tech stocks likewise pounded as fears won that development stocks would be blocked by additional climbs.
In the meantime, oil costs sank 1% from past highs as financial backers stressed that a conditioning economy would restrict energy interest.
In corporate news, portions of Arm and Instacart, which both made their market debuts lately, pared back starting additions, down 4.1% and 10.7%, separately.
The Dow closed 77 points, or 0.2% lower on Wednesday.
The S&P 500 lost 0.9%.
The Nasdaq Composite was down 1.5%.