Live Markets: Increased rate worries knock the wind out of Wall Street after FOMC meeting

Space Exploration Technologies

Today 21:14

Main US indexes end sharply lower after FOMC result; Nasdaq hit hardest, down 1.35%
All S&P 500 sectors end red; Comm Svcs weakest group
Dollar rallies nearly 1%; gold down >1%; bitcoin falls >2%; US crude ~flat
US 10-year Treasury yield jumps to ~4.50%
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INCREASED RATE WORRIES KNOCK THE WIND OUT OF WALL STREET AFTER FOMC MEETING
Wall Street ended sharply lower after the Federal Reserve's first policy meeting under new Chair Kevin Warsh lifted expectations the central bank will raise rates this year to fight inflation.
The Fed held its benchmark rate steady, as expected, while new quarterly projections showed nine Fed officials anticipate a rate hike by the end of 2026.
Interest rate futures now suggest a greater than 50% chance of an interest rate hike by the Fed's September meeting, according to CME's FedWatch tool.
High oil prices resulting from the Middle East conflict have fueled inflation, increasing the likelihood of a rate hike. Meanwhile, data shows strong U.S. hiring and a relatively low 4.3% unemployment rate.
Speaking at the G7 summit in France, U.S. President Donald Trump defended his interim agreement with Iran, saying it had averted a global economic catastrophe, while warning he could launch fresh attacks if Tehran failed to honor its commitments.
"For now, elevated inflation remains a dominant fundamental, with the immediate market reaction following today’s announcement reflecting that,” said Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago.
SpaceX SPCX.O dropped 5%, with its stock market value now at $2.52 trillion.
The PHLX chip index .SOX rallied 1.4%, lifted by sharp gains in Broadcom AVGO.O and Marvell Technology MRVL.O.
With Wednesday's drop, the S&P 500 remains up about 8% in 2026.
(Noel Randewich and Laura Matthews)
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EARLIER ON LIVE MARKETS:
WALL STREET FALLS AFTER FED HOLDS RATES STEADY; POLICYMAKERS SEE 2026 HIKE CLICK HERE
WELLS FARGO: ITS GROWTH OUTLOOK AND WHERE TO BET CLICK HERE
BOFA CLIENTS PIVOT TO SMALL CAPS AMID SELLING IN LARGER NAMES CLICK HERE
FOOD FOR THE FED: SOLID RETAIL AND PENDING HOME SALES, STUBBORNLY HIGH MORTGAGE RATES CLICK HERE
US STOCKS CHOP AROUND AHEAD OF WARSH'S FIRST FED DECISION CLICK HERE
BENCHMARK TREASURY YIELD STEADIES AHEAD OF FED, BIGGER MOVE STILL BREWING CLICK HERE 
NO QUICK FIX FOR IT SERVICES' AI HEADACHE CLICK HERE
BOE RATE HIKES? WHAT FOR? CLICK HERE
TECH NOW ACCOUNTS FOR 20% OF GLOBAL EQUITY POSITIONING, BNY SAYS CLICK HERE
STEADY ON (CLICK HERE)
EUROPE BEFORE THE BELL: TAKING STOCK (CLICK HERE)
ALL EYES ON HOW WARSH WALKS THE LINE (CLICK HERE)
     

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