The Dow Jones Industrial Average Wednesday afternoon was holding on to tenuous gains after the Federal Reserve raised interest rates, as expected, with benchmark U.S. government bond rates failing to push significantly higher thereafter. The Dow DJIA, +0.07% was up about 0.1% at 26,571, with shares of components Goldman Sachs Group Inc. GS, -1.54% American Express Co. AXP, -1.26% and JPMorgan Chase & Co. JPM, -1.47% all trading lower following the Fed’s decision to lift rates to a range of 2% to 2.25%, marking its third rate increase of 2018, with the central bank setting the stage for a fourth in December. The Federal Open Market Committee also removed the term “accommodative,” in characterizing its monetary policy, and Fed Chairman Jerome Powell emphasized during a 2:30 p.m. Eastern news conference following the release of the Fed’s updated policy package, that policy, in fact, remains accommodative, but wanted to signal that the domestic economy is getting stronger. Still, financials sank as the 10-year Treasury yield fell to around 3.06%, compared with 3.08% prior to the Fed decision at 2 p.m. A popular gauge of the financial sector, Financial Select Sector SPDR ETF XLF, -1.04% was down 0.8%, representing the worst performing sector in the S&P 500 index SPX, +0.00% Ordinarily, banks’ business models benefit from a rising interest-rate environment.
See Full Story Stocks reverse gains to close lower as the Fed raises interest rates a third time in 2018
Stocks on Wednesday surrender earlier gains to close lower after the Federal Reserve raised interest rates by 25 basis points as widely anticipated
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