US Stocks Hold Increase After Fed

US stocks swung lower on Wednesday after the Federal Reserve raised interest rates by 25bps, as expected. The S&P 500 fell 1% and the Dow dropped 1.5%, while the Nasdaq 100 fell 0.5%. Median projections by FOMC members reflected one or two additional hikes expected for this year, aligned with upward revisions to projections on inflation and GDP growth, in tandem with the view of lower unemployment for the upcoming years. In the meantime, FOMC Chairman Warsh struck a hawkish rhetoric by prioritizing the fight against inflation and reiterating that current gauges remain high, a reversal from previous speeches that signaled action against prices while downplaying the funds rate as preferred policy tool. Credit-sensitive sectors fell sharply, with Bank of America, Wells Fargo, and Citi falling 4%. AI hyperscalers also retreated with Microsoft, Alphabet, and losing more than 1%.

US100 decreased to 28867.00 Index Points, the lowest since August 2026. Over the past 4 weeks, US 100 Tech Index lost 3.73%, and in the last 12 months, it increased 19.21%.

US stocks remained mostly higher on Wednesday on a rebound from the tech sector, while markets assessed how the economy will fare with the rate hike from the Federal Reserve. The S&P 500 added 0.4% and the Nasdaq 100 gained 1%, while the Dow inched below the flatline. The Fed raised rates by 25bps, as expected, and median projections by FOMC members showed one or two additional hikes expected for this year as inflation is due to remain high and unemployment is expected to remain low. Chip producers and hardware companies extended yesterday's rebound after concerns over AI safety risks voiced by Anthropic and OpenAI jeopardized the momentum of soaring hyperscaler capital expenditure. Intel, Marvell, and Dell gained over 5%, while Nvidia and AMD were 3% higher. In turn, banks, retail, and pharmaceutical companies were mostly higher.