The Dow Jones Industrial Average fell 1.2% and the S&P 500 slipped 0.4% as investors digested hawkish Fed commentary and a sharp 13.3% decline in J.B. Hunt Transport shares.
J.B. Hunt Transport Services lost 13.3% after CFO warned of higher costs and expected earnings drop.
Dow Jones Industrial Average dropped 631 points, or 1.2%, on rate hike worries.
S&P 500 fell 0.4% after Fed rate hike and hawkish comments.
Brent crude fell 2.7% to $105.83, first drop of the week.
Huntington Bancshares fell 5.6% as bank stocks dropped sharply.
South Korea's Kospi climbed 1.4%, one of the world's biggest gains.
Citizens Financial Group sank 4.8% amid bank stock sell-off.
JPMorgan Chase slipped 1% as bank stocks fell on rate hike concerns.
AMD climbed 1.6% as AI stocks recovered.
Nvidia stock rose 0.8% as AI stocks recovered some losses.
Nasdaq composite edged down less than 0.1%, nearly unchanged.
U.S. stocks retreated Wednesday after the Federal Reserve implemented its first interest rate hike in three years. Markets weakened as officials signaled that a strengthening economy may necessitate further aggressive tightening to combat persistent inflation, overshadowing a modest recovery in AI-related technology stocks.
Investors reacted to the Fed's hawkish stance, which suggests that a strengthening U.S. economy may require more interest rate hikes than previously anticipated to curb high inflation.
Bank stocks underperformed as investors anticipated that higher interest rates and a potentially slower economy could reduce loan demand and compress profit margins.