After the United States Central Bank, the Federal Reserve (Fed), hinted at the possibility of a rate hike, major indexes on the New York stock market closed lower.
On the 17th (local time) in New York, the Dow Jones Industrial Average finished at 51,493.16, down 506.51 points (-0.97%) from the previous session. The Standard & Poor's (S&P) 500 fell 91.22 points (-1.21%) to 7,420.13, and the tech-heavy Nasdaq composite closed at 26,021.66, down 354.69 points (-1.34%).
The New York market opened higher as investors watched the results of Federal Reserve Chair Kevin Warsh's first Federal Open Market Committee (FOMC) regular meeting. As expected, the Fed held the federal funds rate at 3.50% to 3.75% annually, but its dot plot suggested a year-end median policy rate of 3.8%, hinting at a rate increase this year.
On the news, U.S. Treasury yields, which are sensitive to policy-rate expectations, jumped. The 2-year Treasury yield rose 0.17 percentage point to 4.22% from the prior session, and the benchmark 10-year yield climbed 0.07 percentage point to 4.49% in trading.
Mega-cap tech stocks broadly weakened. Nvidia (-1.33%), Apple (-1.10%), Microsoft (-3.80%), Meta (-5.44%), Alphabet (-2.53%), Amazon (-3.46%), and Tesla (-2.05%) all fell in succession.
SpaceX, which had risen for three straight sessions since its listing, turned lower for the first time and fell 4.95%. In contrast, some semiconductor names such as Broadcom and Micron, which had slumped the previous day, finished higher.