Search

US stocks close lower amid Fed rate hike

Thursday, December 20, 2018
17
Separator
22
Separator
57
Separator
7
Separator
Print Print Email Email

US stocks fell after the Federal Reserve raised its benchmark interest rate for the fourth time this year.

The Dow Jones Industrial Average on Wednesday plunged 351.98 points, or 1.49 per cent, to 23,323.66. The S&P 500 decreased 39.2 points, or 1.54 per cent, to 2,506.96, Xinhua news agency reported. 

The Nasdaq Composite Index was down 147.08 points, or 2.17 per cent, to 6,636.83.

All but one of the 30 components of the Dow closed lower. All the 11 primary S&P 500 sectors closed lower, with consumer discretionary and technology down 2.23 per cent and 1.94 per cent, respectively, leading the laggards.

Of the S&P 500 member stocks, 60 per cent ended up in bear market territory on Wednesday after the Federal Reserve announced its decision to raise short-term interest rates by a quarter of a percentage point.

"In view of realised and expected labour market conditions and inflation, the (Federal Open Market) Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 per cent," the Fed said in a statement after concluding a two-day policy meeting. 

It marked the Fed's fourth rate hike this year and the ninth such move since late 2015, as the central bank moves forward on the path of monetary policy normalization. 

Meanwhile, during a press conference, Fed Chairman Jerome Powell indicated the Fed was likely to raise rates twice in 2019.

Investors fretted over the interest rate spike, fearing that rising borrowing costs could slow down the economy, experts noted. 

Read more news:

Saraswat Co-operative Bank, First to go Live on Whatsapp Channel from Co-operative Sector

Trump commits to $750 bn defence budget


Source: IANS
Looking For Loan? Let us Help you !!!
Product
Name
City
Phone
Email
Loan Amount
Annual Income
Preferred banks
Captcha
Type the characters you see in the picture
  Submit
SPOTLIGHT
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..
Previous
Next