Fed expected to raise interest rates for the first time since 2023

Link Copied! Stocks drop, bond yields climb after Fed hikes rates By John Towfighi Screens display a news conference held by Federal Reserve chairman Kevin Warsh on the floor of the New York Stock Exchange on Wednesday. Seth Wenig/AP Stocks fell, bond yields moved higher and the US dollar surged Wednesday afternoon after the Federal Reserve raised interest rates for the first time since 2023.

The S&P 500 fell 0.45%, turning into the red in the afternoon. The Dow tumbled 631 points, or 1.21%. The tech-heavy Nasdaq fell 0.01%, giving up gains after rising as much as 0.9% earlier.

The major indexes notched their third straight day of losses, and are down seven out of the past eight trading sessions.