Stocks swing lower after Fed hikes, raises outlook for rates

U.S. stocks gave up gains to turn lower Wednesday afternoon after the Federal Reserve, as expected, raised its fed funds rate by 75 basis points, while also signaling that rates would remain higher for longer as the central bank attempts to get a grip on persistent inflation. The Fed’s so-called dot plot showed an expectation for a fed funds rate peaking at 4.6% in 2023, with 12 of 19 policy makers showing expectations for a fed funds rate between 4.5% and 5% in 2023. The Dow Jones Industrial Average DJIA, -1.20% erased a gain of around 170 points and was down 100 points, or 0.3%, on the day. The S&P 500 SPX, -1.15% fell 0.3%, giving up a gain of 0.7%, while the Nasdaq Composite COMP, -1.12% gave up a comparable gain to fall 0.6%.