- US stocks were all over the place on Wednesday after the Federal Reserve hiked rates by 75 basis points.
- The Dow, S&P 500, and Nasdaq 100 all closed sharply lower as the Fed signaled that more rate hikes were on the way.
- "There is a strong clustering within the dot-plots, showing all FOMC members are on board with this more hawkish narrative," ING Economics said.
US stocks closed sharply lower in a whiplashed trading session on Wednesday after Federal Reserve Chairman $4 and signaled that more increases were imminent.
The new fed funds target rate is between 3.0% and 3.25%, and the Fed expects it to be just under 4.5% at year-end, according to the central bank's so-called dot plot of forecasts. That suggests the Fed could hike interest rates by another 75 basis points at November's FOMC meeting, followed by a 50-basis-point bump in December.
Additionally, comments from Powell's press conference suggested a couple 25-basis-point rate hikes were possible in early 2023, bringing the fed funds target rate closer to 5%.
"With inflation proving to be far stickier than imagined, the Fed repeated that activity needs to slow much more with the door left wide open for a fourth consecutive 75bp hike in November...it is important to note that there is a strong clustering within the dot-plots, showing all FOMC members are on board with this more hawkish narrative," ING Economics said.
Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:
- S&P 500>$4: 3,789.91, down 1.71%
- Dow Jones Industrial Average>$4: 30,183.78, down 1.70% (522.45 points)
- Nasdaq Composite>$4: 11,220.19, down 1.79%
Here's what else is happening this morning:
- JPMorgan's Marko Kolanovic said in a note to clients on Wednesday that the $4 and cut interest rates next year if a deep economic recession materializes.
- Germany is $4 in a deal that underscores Europe's energy crisis. Uniper announced Wednesday the German government will acquire a 99% stake in the utility.
- President Vladimir Putin $4 to hold onto its territory in Ukraine. In a $4, Putin also said Moscow is calling up more troops to join the forces in Ukraine.
- Oil rose, $4 Wednesday after Putin accused Western allies of "nuclear blackmail" and hinted Russia is ready to use its own nuclear weapons if needed.
- JPMorgan CEO Jamie Dimon $4 but warned its challenges could end in disaster, during a hearing in front of the House Financial Services Committee on Wednesday.
- Digital World Acquisition extended its six-day sell-off to as much as 30% after $4 over its delayed merger.
- The US average for a gallon of gas rose to $3.681 on Wednesday from $3.674 on Tuesday, $4, AAA data shows.
In commodities, bonds and crypto:
- $4 oil fell 0.26% to $83.72 per barrel. $4, oil's international benchmark, rose 0.09% to $90.70.
- $4 rallied 1.16% to $1,690.50 per ounce.
- The yield on the 10-year Treasury fell 4 basis points to 52%. The 10-year yield hit an intra-day high of 3.619%.
- Bitcoin rose 0.48% to $19,120, while ether climbed 0.36% to 1,341.