U.S. stocks dropped on Wednesday after the Federal Reserve raised its inflation expectations and moved up the time frame on when it will hike interest rates next.
The Dow Jones Industrials hurtled earthward 265.66 points to greet the closing bell Wednesday at 34,033.67.
The S&P 500 demurred 22.89 points to 4,223.70. The broad equity benchmark dropped as much as 1% in volatile trading as all 11 sectors fell into the red at one point.
The NASDAQ faded 33.17 points to 14,039.68.
Economic reopening plays provided the broader market with some support. Royal Caribbean and Norwegian Cruise Line both climbed about 2% after an upgrade from Wolfe Research. United Airlines and American Airlines also registered gains.
The policymaking Federal Open Market Committee indicated that rate hikes could come as soon as 2023, after signaling in March that it saw no increases until beyond that year.
he central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program, which also helped bolster markets. The Fed has been buying $120 billion worth of bonds each month as the economy continues to recover from the coronavirus pandemic.
Prices for 10-Year Treasurys were emphatically higher, lowering yields to 1.57% from Tuesday’s 1.50%. Treasury prices and yields move in opposite directions.
Oil prices lost 26 cents to $71.86 U.S. a barrel.
Gold prices gave back $25.90 to $1,830.50U.S. an ounce.