- US stocks fell Wednesday as the Fed signaled that rates will be higher for longer.
- The central bank's so-called dot plot of rate forecasts indicated one more increase later this year.
US stocks faltered Wednesday after the Federal Reserve indicated that interest rates will remain higher for longer.
In line with expectations, the central bank kept rates steady at 5.25%-5.5%. But projections in the Fed's so-called dot plot point to one more hike in 2023. In addition, they indicated two rate cuts next year, down from four in an earlier forecast.
The 2-year Treasury yield climbed to the highest level since 2006, and the 10-year yield reversed an earlier decline to head back up slightly.
Still, the dot plot represents forecasts and not actual plans.
"Fed officials appear to be divided on whether higher policy rates are needed to bring inflation back down to their 2% target," Charlie Ripley of Allianz Investment Management wrote.
Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:
- S&P 500: 4,402.20, down 0.94%
- Dow Jones Industrial Average: 34,440.88, down 0.22% (76.85 points)
- Nasdaq Composite: 13,469.13, down 1.53%
Here's what else happened today:
- "Don't worry, be happy" — here are five reasons Bank of America is bullish on stocks.
- Apple gave up plans to add a stock trading feature to the iPhone after last year's brutal market.
- Capital flight from China jumped to its highest pace since 2015, on economic worries.
- Global debt reached an all-time high of $307 trillion.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell 1.05% to $90.48 a barrel. Brent crude, the international benchmark, slid 1.02% to $93.41 a barrel.
- Gold inched up 0.43% to $1,943.12 per ounce.
- The yield on the 10-year Treasury bond ticked 0.8 basis point higher to 4.351%.
- Bitcoin essentially stayed flat at $27,154.