Wall Street: US stock markets close in the red after Fed rate hike
The US Federal Reserve has raised interest rates by 0.25 percentage points. Some stock market indices are reacting negatively. In contrast, bond yields are showing signs of easing.
The US Federal Reserve has raised interest rates for the first time in about three years, increasing the benchmark rate by a quarter of a percentage point to a range of 3.75 to 4.00 percent. The decision was expected by analysts and initially had a muted reaction from markets. However, following a press conference by Fed Chairman Kevin Warsh, major stock indexes fell, with the Dow Jones dropping 1.2 percent to 51,462 points and the S&P 500 losing 0.4 percent to 7,552 points.
The move was driven by high inflation, which remained at 3.4 percent year-over-year in August, and a robust labor market that saw more jobs created than expected.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
