U.S. stocks end mostly lower after Fed rate hike

Posted June 16, 2017

As expected, the Fed lifted interest rates for the second time this year, and in a post-meeting press conference, Fed Chair Janet Yellen said the economy is on the path to achieving the current 2% inflation target.

The Fed officials agreed on a plan to reduce its $4.5 trillion balance sheet in a "gradual" and "predictable" manner.

"With the weak data, you start to wonder why the Fed is so bent on raising rate".

US stocks have hit a string of records this year, .

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The broad-based S&P 500 dipped 5.46 points (0.22 per cent) to end at 2,432.46, while the tech-rich Nasdaq Composite Index fell 29.39 points (0.47 per cent) to 6,165.50.

The Dow Jones Industrial Average (DJIA- 21,374.56) briefly lost steam after the Fed announcement, but shot higher in the final minutes of trading, touching an all-time high of 21,391.97.

The economic data also pressured the dollar index, which fell to its lowest since November 9. However, defensive sectors such as utilities rose.

The markets seem to keep chugging up the mountain these days, no matter what is going on in the US or the world.

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The Nasdaq is down 13.03 points, or 0.2 percent.

"The data show a stronger likelihood for the best-performing funds to become the worst-performing funds than vice versa", S&P Dow Jones Indices said.

Facebook, Mircosoft and Alphabet, which had been hit hard by a selloff in the tech sector earlier this week, rose for the second straight day.

The S&P 600 Small-Cap Index closed at 856.96 for a loss of 4.19 points or 0.49%.

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But some investors anxious about the Fed's hawkish tone and that concerns about rate hikes were being reflected in the tech sector, which has led the S&P 500's almost 9-per-cent rally this year. August-dated gold futures fell $21.30, or 1.7%, to settle at $1,254.60 an ounce.