US stocks close lower as Fed signals 1 more hike this year

By Ovunc Kutlu

ISTANBUL (AA) - US stocks closed lower Wednesday as the Federal Reserve's key projection figures showed the central bank expects one more rate hike in 2023.

The Dow Jones was down 76 points, or 0.22%, to finish the day at 34,440. The S&P 500 lost 41, or 0.94%, to 4,402.

The Nasdaq plummeted 209, or 1.53%, to 13,469.

Fed expects an additional rate hike in 2023 and indicated fewer rate cuts are expected next year, according to the bank's projection materials.

"The majority of (Federal Open Market Committee’s) participants believe that it is more likely that it will be appropriate to raise rates one more time in the two remaining meetings this year," Chair Jerome Powell said in a post-meeting news conference.

For the second time this year, the bank skipped an interest rate increase at the conclusion of its two-day meeting and left the federal funds rate unchanged between the 5.25% - 5.5% target range.

The VIX volatility index, also known as the fear index, jumped 7.3% to 15.13, while the 10-year US Treasury yield rose 0.6% to 4.393%.

The dollar index was up 0.23% to 105.44, and the euro fell 0.15% to $1.0661 against the greenback.

Precious metals were on the rise, with gold adding 0.1% to $1,931 per ounce and silver increasing 0.2% to $23.25.

Oil prices were down more than 1.2%, with global benchmark Brent crude at $93.17 per barrel and US benchmark West Texas Intermediate at $89.30.