scorecardUS stocks fall after Fed raises rates but points to possible pause on further increases
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US stocks fall after Fed raises rates but points to possible pause on further increases

Morgan Chittum   

US stocks fall after Fed raises rates but points to possible pause on further increases
Stock Market1 min read
The central bank hiked rates by 25 basis points, as was widely expected.    TIMOTHY A. CLARY / Getty
  • US stocks fell on Wednesday as markets digested the latest Fed rate hike of 25 basis points.
  • Chairman Jerome Powell reiterated that inflation is still high, and said the economy may dodge a recession.

US stocks closed lower on Wednesday after the Federal Reserve hiked interest rates again and signaled further increases may not be coming.

The Fed lifted rates by 25 basis points, as was widely expected, marking the 10th increase in borrowing costs since March 2022.

But subsequent remarks from Chairman Jerome Powell may have dampened hopes for a Fed pivot to rate cuts later. He reiterated that US inflation is still high, and said the odds for avoiding a recession seem greater than than those for entering a recession.

Meanwhile, investors are also awaiting more quarterly earnings reports, with Apple's results slated to be released after market close on Thursday.

Here's where US indexes stood shortly after the 4:00 p.m. ET close on Wednesday:

Here's what else happened today:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil fell 4.7% to $68.29 per barrel. Brent crude, oil's international benchmark, dropped 4.3% to $72.04.
  • Gold rose 0.4% to $2,032 per ounce.
  • The yield on the 10-year Treasury fell 6.6 basis points to 3.37%.
  • Bitcoin fell 1.5% to $28,360.



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