Stocks Drop as Fed Signals Steeper Path for Rates: Markets Wrap
- Ten-year Treasury yields hit 3% on prospect of two more hikes
- Dollar, euro, pound fluctuate; Texas oil jumps on suprise draw
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U.S. stocks finished lower as the Federal Reserve struck a somewhat hawkish tone in its latest policy statement. Treasuries fell, while the dollar retreated after spiking to session highs. Other major currencies fluctuated as investors absorbed the first of three big central bank reports this week.
The Federal Open Market Committee on Wednesday raised rates and signaled it may pick up the pace of increases this year as unemployment falls and inflation flirts with target levels. Ten-year Treasury yields briefly crossed the 3 percent threshold after the announcement. The S&P 500 Index closed near its low for the day.