S&P 500 Falls 0.45% After Fed's First Rate Hike in Three Years

The S&P 500 closed at 7,551.81 on Wednesday, down 0.45% from Tuesday's close of 7,585.73. The index opened at 7,601.25 and reached a high of 7,626.79 in early afternoon trading before plummeting to a low of 7,507.77 after the Federal Reserve's rate decision.

The Fed raised its target lending rate by 25 basis points to a range of 3.75% to 4%, marking its first increase in three years. This move was largely anticipated, with 90% odds of a hike priced in ahead of the announcement.

However, the market's initial reaction was reversed as investors reassessed the Fed's guidance. Treasury yields fell across the curve after the decision, which helped underpin the S&P 500's late-session recovery from its post-Fed low.