US Dow tumbles to 3-month low on hawkish Fed

The US stock market finished volatile session deeply in negative territory on Wednesday, 21 September 2022, after the Fed raised interest rates by another three-quarter of a percentage point and signaled further aggressive rate hikes for the remainder of the year.

At the close of trade, the Dow Jones Industrial Average index stumbled 522.45 points, or 1.7%, to 30,183.78. The S&P500 index dropped by 66 points, or 1.71%, to 3,789.93. The tech-heavy Nasdaq Composite Index fell 204.86 points, or 1.79%, to 11,220.19.

All major S&P 500 sectors finished the session in negative territory, led to the downside by consumer discretionary, communication services, materials and a slew of growth names. Travel and entertainment stocks also took a hit along with beaten-up big technology stocks Apple, Amazon and Meta Platforms.

ECONOMIC NEWS: The US Federal Reserve raised its target interest rate by three-quarters of a percentage point to a range of 3.00%-3.25% on Wednesday and signalled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before topping out at 4.60% in 2023 to battle continued strong inflation.

Among Indian ADR, ICICI Bank fell 1.83% to $22.56, Azure Power Global added 2.1% to $6.34, HDFC Bank fell 2.4% to $63.84, Tata Motors sank 2.4% to $26.25, and Dr Reddy's Labs fell 1.5% to $51.23. WNS Holdings fell 0.8% to $82.19 and Wipro dropped 1.4% to $4.91. INFOSYS was steady at $17.02.

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