Wall Street closed lower on Wednesday after the Federal Reserve held interest rates steady at 3.50-3.75% and nine of 19 policymakers projected at least one rate increase by the end of 2026. The Dow Jones Industrial Average fell 507.12 points, or 1%, to 51,492.55, while the S&P 500 lost 1.2% to 7,420.10 and the Nasdaq Composite declined 1.3% to 26,021.66. New Fed Chairman Kevin Warsh dropped forward guidance and said future decisions will be data-dependent, while also announcing a comprehensive review of communications, the balance sheet, and the monetary policy framework. In economic data, retail sales rose 0.9% in May, exceeding the 0.4% consensus estimate, and pending home sales increased 3.8%, well above the expected 1% gain.
Carvana CoFed holds rates steady and signals possible hikes, which is negative for growth-sensitive stocks like Carvana.