U.S. stocks slipped as investors digested a hawkish 25 basis point rate hike from the Federal Reserve, though AI stocks showed resilience with gains in Nvidia, Intel, and Dell.
Nvidia rose as AI stocks stabilized after the Fed-driven sell-off.
Dow lost 1.21% as higher borrowing costs pressured equities.
Intel gained on news of a potential chip deal with SK Hynix, though unclear.
S&P 500 fell 0.45% after the Fed raised rates 25bp with a hawkish tone.
Dell finished in the green as AI stocks recovered on value buying.
Gold fell 0.67% as the Fed's rate hike boosted the dollar and real yields.
SK Hynix clarified no decisions have been made on a chip deal with Intel.
Nasdaq slipped 0.01% as traders digested the Fed's first rate hike in three years.
Major U.S. indices retreated as the Federal Reserve implemented its first interest rate hike in three years, lifting the target range to 3.50%-3.75%. While the Dow Jones Industrial Average led the decline with a 1.21% loss, AI-focused equities including Nvidia, Intel, and Dell managed to stabilize and finish in positive territory.
The market reacted to the first interest rate hike in three years, with investors pricing in the potential for further increases and the impact of higher borrowing costs on corporate growth.
While Intel shares gained on reports of a potential partnership, SK Hynix has clarified that no formal decisions regarding a deal have been made.