Dow closes lower after the Fed’s decision

Stocks fell in volatile trading Wednesday after the Federal Reserve raised rates by 75 basis points and forecast more sizable rate hikes ahead in its fight to tame surging inflation.

The Dow Jones Industrial Average slid 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 shed 1.71% to 3,789.93, and the Nasdaq Composite slumped 1.79% to 11,220.19.

The S&P ended Wednesday’s session down more than 10% in the past month and 21% off its 52-week high, while the Dow and Nasdaq finished more than 21% and 30% off their highs, respectively. Even before the rate decision, stocks were pricing in an aggressive tightening campaign by the Fed that could tip the economy into a recession.

Stocks were volatile as traders parsed through the rate decision and the latest comments from Powell’s press conference. At its highs, the Dow was up more than 314 points.