Dow drops over 500 points as stocks end sharply lower after Fed rate hike

Stocks took a sharp turn lower to end a choppy session Wednesday, sinking after the Federal Reserve delivered a widely expected 75 basis point rate hike but also lifted its forecast for a peak in rates above market expectations. Stocks gave up initial gains following the Fed decision, then flipped between gains and losses during Fed Chair Jerome Powell’s news conference, before taking a turn to new lows late in the session. The Dow Jones Industrial Average DJIA, -1.70% dropped around 522 points, or 1.7%, to end near 30,184, according to preliminary figures, while the S&P 500 SPX, -1.71% shed 1.7% to close near 3,790 and the Nasdaq Composite COMP, -1.79% declined 1.8% to finish near 11,220.