The widely expected interest rate hike was announced at the end of the two-day Federal Reserve Open Market Committee (FOMC) meeting yesterday. The federal funds rate, increased for the fourth time this year, now stands at 2.25-2.50%.
Despite this, majority of the finance sector stocks (which usually benefit from higher rates) ended the day in red as broader markets declined. Fears that the central bank’s interest rate hike will hurt the economy dragged the S&P 500, Nasdaq and the Dow Jones to almost near respective 52-week lows.
