The US Federal Reserve raised its policy interest rate for the first time in more than three years, sending the Dow Jones Industrial Average down 631.21 points, or 1.21%, to close at 51,461.90. The monetary policy committee voted unanimously to raise the short-term interest rate by another 0.25%, bringing the target rate to 3.75-4%, the first increase since July 2023. Fed Chair Kevin Warsh said the US economy has grown stronger, but inflation trends have improved only slightly, and the Fed's economic projections indicate one more rate hike this year. The S&P 500 closed at 7,551.81, down 33.92 points, or 0.45%, while the Nasdaq closed at 25,978.42, down 3.15 points, or 0.01%. Energy stocks fell the most, down 3.0%, amid weaker crude oil prices, with Chevron and Exxon Mobil dropping 2.9% and 3.5% respectively. Bank of America and Wells Fargo each fell nearly 3% after the Fed announced its decision.
Bank of America Corp
Wells Fargo & Company
Chevron Corp
Exxon Mobil Corp