US stocks ended lower on Wednesday after the Federal Reserve raised interest rates for the first time in more than three years and signalled further tightening as inflation remains elevated.
The Dow Jones Industrial Average fell 1.21% to 51,461.78, while the S&P 500 declined 0.44% to 7,552.14. The Nasdaq Composite slipped 0.01% to 25,978.43.
The Fed raised its benchmark rate by 25 basis points to 3.75% to 4.00%, with policymakers indicating that another hike is likely before the end of 2026.
Fed Chair Kevin Warsh said the US economy had strengthened since the previous meeting, with resilient domestic spending, strong productivity and robust capital investment supporting the case for tighter policy.
The market had initially traded higher, helped by a rebound in semiconductor stocks, before turning lower following the Fed decision.
Energy stocks were among the biggest losers as oil prices fell, with the S&P 500 energy sector dropping 3.0%. Chevron fell 2.9% and Exxon Mobil declined 3.5%, while Devon Energy and ConocoPhillips each lost more than 5%.
Oil prices eased after Saudi Arabia offered additional crude cargoes via Oman, with WTI crude settling 3.2% lower and Brent falling 2.7%.
Meanwhile, semiconductor stocks rose 0.6%, while Intel gained 4.0% following reports that SK Hynix was in talks with the company over US memory chip manufacturing.
The broader market remained weak, with declining stocks outnumbering gainers by 1.75 to one on the New York Stock Exchange.
