Fed Raises Rates for First Time in Three Years Amid High Inflation Concerns

The Federal Reserve raised its main interest rate for the first time in three years and indicated more hikes may be ahead 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 took some of the market's sharper losses as a slower U.S. economy could mean less demand for loans from them, and banks also get hurt when the gap narrows between short-term interest rates and longer-term ones.