LIVE MARKETS-Fed hikes rates, Wall Street holds steady
SPY•Technology leads; energy lags
A majority of S&P 500 sectors are higher with technology .SPLRCT, up around 0.8%, the top gainer. Energy .SPNY, down 2%, is the biggest loser.
After the statement, technology was still the leading gainer and energy was still the biggest loser. Investors will be watching Warsh's press conference for more details on the Fed's thinking.
Market reaction and strategist comments
"Warsh not only read the markets, but he read the room, supporting a rate hike. That’s why we can get a relatively muted response from the markets despite the change in course," said Brian Jacobsen, chief economic strategist at Annex Wealth Management.
But Jacobsen said in an email that he "wouldn’t bank on another hike this year."
"Yes, the median dot shows another hike this year, but a lot can change between now and then," he said.
Wall Street holds steady after Fed rate hike
The S&P 500 .SPX is choppy on Wednesday after the Federal Reserve announced a 25-basis-point increase in overnight interest rates, as was widely expected.
However, the U.S. central bank flagged further increases in borrowing costs in coming months. New Fed chief Kevin Warsh joined a unanimous decision to hike that effectively acknowledges the Trump administration's inability so far to control inflation.
The U.S. 10-year Treasury yield US10YT=RR is also little changed from where it was just prior to the release of the statement.
