Dow falls 505 point after Fed delivers another big rate hike and Powell signals commitment to inflation fight

• Stocks dropped on Wednesday after the Federal Reserve delivered another 75 basis point rate hike.
• It's the fourth hike of that size this year as the central bank scrambles to tame inflation.

US stocks fell on Wednesday after the Federal Reserve delivered another 75-point rate hike, erasing gains made earlier on hopes a pivot by the central bank could be near.

All three indices ended the day in the red, with the Nasdaq Composite slipping by more than 3%.

The latest hike brings the fed funds rate to lie between 3.75% and 4%, the highest policy rate since 2008.

In a statement, Fed officials pointed to persistently high inflation and hot economic data. Job openings unexpectedly rose in the last JOLTS report, indicating the labor market is still running hot. But central bankers hinted they would potentially soften the pace of hiking in the future, leading some investors to price in odds of a 50 basis points hike in December.

"In determining the pace of future increases in the target range the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments," the statement said, reiterating the Fed's commitment to get inflation back down to its 2% target.

Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

• S&P 500: 3,759.68, down 2.5%

• Dow Jones Industrial Average: 32,147.76, down 1.55% (505.44 points)

• Nasdaq Composite: 10,524.80, down 3.36%

Despite renewed hope for Fed easing, market commentators warned the central bank would continue hiking into 2023.

"Fed officials are alert to how risks to global growth and financial stability may impact the US economy, however, we think their near-term priority will be addressing the greater perceived challenge of restoring price stability," Goldman Sachs strategist Gurpreet Gill said in a statement.

"Investors should not get ahead of themselves," Lazard chief stock strategist Ronald Temple warned. "This is not an environment in which the Fed will pivot or signal a pivot. To do so would be malpractice, and the Fed knows that. In December, the Fed will have two more inflation reports and two more jobs reports. Then, perhaps, the FOMC can signal a deceleration in tightening, but not before."

Here's what else is happening today:

• Mortgage rates fell for the first time in two months as demand for home loans keeps softening.
• Investor sentiment is at its lowest level since 2017, which could mean a huge rally is looming, according to Bank of America.
• The Fed runs a greater risk of doing too little to fight inflation rather than too much, according to top economist Mohamed El-Erian.
• Russia is now India's top oil supplier, surpassing Iraq and Saudi Arabia as the nation tries to find other customers to replace the EU.
• The only way oil prices can reach $120 a barrel is if there are a lot of supply disruptions, according to Citi's commodities chief.

In commodities, bonds, and crypto:

• West Texas Intermediate crude rose 1% to $89.27 per barrel. Brent crude, the international benchmark, rose 1.12% to $95.83.
• Gold slipped 0.52% to $1,637.90 per ounce.
• The 10-year Treasury yield inched higher, rising to 4.05%.
• Bitcoin edged lower 0.97% to $20,265.117.