Wall Street ends lower after Fed hikes interest rates, sees more tightening ahead
The Dow Jones Industrial Average fell 631.33 points, or 1.21 per cent, to 51,461.78, the S&P 500 lost 33.59 points, or 0.44 per cent, to 7,552.14.
On September 16, US stocks experienced a volatile day as the Federal Reserve increased its key interest rate for the first time in over three years due to persistent high inflation caused by escalating crude oil prices during the US-Israeli conflict with Iran. The Federal Reserve's decision was unanimous, and they indicated more tightening might be necessary in the near future to bring inflation under control.
Fed Chair Kevin Warsh stated that the US economy has grown since the last meeting, but inflation has remained stubbornly above the 2% target for five years.
The three major US stock indexes showed mixed results, with the tech-heavy Nasdaq leading the gains and the Dow Jones Industrial Average and S&P 500 declining. Semiconductor shares led the tech sector's upward movement, while energy stocks were the biggest losers due to declining crude prices. Chevron and Exxon Mobil suffered the most significant percentage drops, while energy stocks overall experienced the largest decline of 3%.
Intel saw a 4% increase due to news of a potential partnership with SK Hynix for US-based memory chip manufacturing.
The US Department of Justice charged two former Robinhood engineers with insider trading and misuse of confidential information. Volume on US exchanges reached 18.42 billion shares, surpassing the 15.33 billion average for the previous 20 trading days.
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