The Dow Jones fell 200 points as the Federal Reserve pledged to continue raising interest rates to fight inflation

Stocks were lower on Wednesday, giving up earlier gains, after the Federal Reserve announced its latest monetary policy move.

The Dow Jones Industrial Average lost 176 points, or 0.58%. The S&P 500 was down 0.53%, while the Nasdaq Composite was down 0.57%.

Disney and Caterpillar led the Dow Jones Industrial Average down, dropping 2% each, on concerns that the Federal Reserve may go too far in raising interest rates. Materials, Communications Services and Consumer Estimation were the worst performers in the S&P 500, each down more than 1%.

The Fed raised interest rates by 0.75 percentage points, or 75 basis points, as widely expected. The Fed also said it expects the so-called final interest rate to reach 4.6% to fight persistently high inflation in the US. This is the rate at which the central bank will end its tightening regime.

Treasury yields popped up in the news. The two-year interest rate, which hit its highest level since 2007, was around 4.1%. The 10-year rate jumped to about 3.6%.

Federal Reserve Chairman Jerome Powell is scheduled to hold a press conference at 2:30 PM ET.

general millsThe stock hit an all-time high after its latest earnings report. Defense stocks too Russian President Vladimir Putin ascended He called for a partial military mobilization.

The S&P 500 has fallen more than 8% in the past month, giving up most of the summer’s rebound, as traders begin to fear that the Federal Reserve will raise interest rates too much and push the economy into recession. The index is flat for the week leading to Wednesday’s decision.

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