Wall Street drops after US rate hike

The U.S. stock market was affected following the Federal Reserve's decision to raise interest rates for the first time in over three years, aiming to combat high inflation that worsened due to increased oil prices during the U.S.-Israeli war on Iran. After the announcement, the Dow Jones Industrial Average dropped by 608 points, a 1.17% decline, closing at 51,484.69 points. The S&P 500 decreased by approximately 33.48 points (0.43%), ending the day at 7,552.88 points, while the Nasdaq held steady at 25,978.43 points. The accompanying statement confirmed that the decision was unanimous and indicated that further monetary tightening could be implemented soon to drive inflation down. Despite economic growth since the previous meeting, inflation has remained above the 2% target for five years, with consumer spending continuing despite rising prices, especially for gasoline. The technology sector was supported by chip company stocks, while the energy sector experienced the largest declines due to falling oil prices. These developments led to a decline in markets following the interest rate hike decision.

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