Nasdaq Holds Steady Amid Fed Rate Hike Chaos

The US equity market closed its volatile session on Wednesday after the Federal Reserve delivered its first interest rate hike in over three years. Despite the hawkish guidance from Fed Chair Kevin Warsh, the technology-heavy Nasdaq Composite managed to end nearly flat with a marginal decline of just 3.15 points or 0.01%. The index opened at 26,108.46 and reached an intraday high of 26,225.09 before pulling back sharply.

The Dow Jones Industrial Average, on the other hand, bore the brunt of the selling pressure, tumbling over 630 points as investors digested the central bank's policy announcement. Financial heavyweights such as Goldman Sachs and American Express led the decline, dropping 3.96% and 3.63%, respectively.

The Russell 2000 Index, which tracks the performance of small-capitalisation US companies, closed at 2,849.96, down 20.33 points or 0.71%. Small-cap stocks have historically been more sensitive to changes in interest rates due to their greater reliance on debt financing and more domestically focused revenue streams.