US Fed Rate Hike: S&P 500 Falls 0.43% as Nasdaq Holds Near 25,978, AI Stocks Face New Pressure From Higher Rates as Investors Assess Next Fed Move After Fed Chair Warsh Decision
India, Sept. 17 -- The Feds have reverted back to raising rates and the Wall Street is now left with another factor that will necessitate a new analysis of the prospects for the stocks. In an announcement made on Wednesday September 16, 2026, the Federal Open Market Committee raised the target range of the federal funds rate by 25 basis points to a range of 3.75% -4.00% which was the first time that the Federal Reserve had increased interest rates since July 2023. It followed the inflation rate that remained higher than the Fed's target of 2% and pressure from oil prices. The S&P 500 closed down 0.43% at 7,552.88, while the Nasdaq Composite slipped just 0.01% to 25,978.43 and the Dow Jones Industrial Average dropped 1.17%.
Why the Fed Ra...
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