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Wall Street loses ground as Fed signals two more hikes this year


By Caroline Valetkevitch

(Reuters) - U.S. stocks lost some ground and were trading lower on Wednesday after the Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes in the coming months.

Two additional hikes are now expected by the end of this year, compared to one previously.

In its decision Wednesday, the Fed raised its benchmark overnight lending rate a quarter of a point to a range of between 1.75 percent and 2 percent.

"The fact they're talking about four rate hikes this year instead of three is disappointing. Everybody knew they were going to hike in June. People thought they might pause in September. It doesn't look like they're going to do that," said Stephen Massocca, at in

One worry about higher rates is that they will weigh on economic growth, he said.

At 2:30 p.m. ET, the <.DJI> fell 58.17 points, or 0.23 percent, to 25,262.56, the 500 <.SPX> lost 6.8 points, or 0.24 percent, to 2,780.05 and the Composite <.IXIC> dropped 6.28 points, or 0.08 percent, to 7,697.51.

500 financials <.SPSY>, which tend to benefit from higher rates, were up 0.7 percent.

A ruling that approved AT&T's $85 billion deal to buy put the spotlight on media and telecom shares, which mostly rose.

Shares of channel owner rose 2.6 percent. dropped 5.5 percent, sending the telecom services index <.SPLRCL> down 3.9 percent.

surged 6.9 percent as is expected to outbid for some of its assets.

Declining issues outnumbered advancing ones on the NYSE by a 1.91-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favoured decliners.

The posted 40 new 52-week highs and 2 new lows; the Composite recorded 151 new highs and 24 new lows.

(Additional reporting by in New York and Sruthi Shankar in Bengaluru; Editing by and Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 14 2018. 00:16 IST