Fed Hikes Interest Rates to Combat High Inflation

The Federal Reserve raised interest rates for the first time in three years on Wednesday, and investors took it as a signal that more rate hikes may be coming to combat high inflation.

The S&P 500 fell 0.4% after initially holding onto modest gains, while the Dow Jones Industrial Average dropped 631 points or 1.2%, and the Nasdaq composite was nearly unchanged.

Bank stocks were among the biggest losers, with Huntington Bancshares down 5.6%, Citizens Financial Group falling 4.8%, and JPMorgan Chase slipping 1%.