U.S. markets retreated as the Federal Reserve raised rates to a 3.75%-4% range, signaling further potential hikes while energy benchmarks Brent and WTI crude both dropped 3% on the session.
The Dow fell 407 points, or 0.8%, in afternoon trading after the Fed's 25bp rate hike.
Brent crude slipped about 3% to near $105 a barrel during Wednesday's session.
U.S. West Texas Intermediate dropped 3%, settling at roughly $102 per barrel.
The S&P 500 lost 0.4% as the Fed raised rates and signaled another possible hike.
The Nasdaq Composite was little changed, showing a muted reaction relative to the other major indices.
The Dow Jones Industrial Average fell 0.8% after the Federal Reserve implemented a 25 basis point rate hike, the first since 2023. Fed Chair Kevin Warsh cited persistent inflation as the primary driver for the unanimous decision, while energy prices retreated as Brent and WTI crude both slipped 3%.
The Federal Reserve raised rates by 25 basis points due to stubbornly elevated inflation levels that have not shown meaningful improvement.