NEW YORK, New York - U.S. stocks tumbled on Wednesday after the Federal Reserve raised official interest rates for the first time since 2023.

"We now have data broadly defined that says the economy has indeed strengthened," Fed Chair Kevin Warsh told a news conference following the meeting. "Underlying growth is higher. Inflation is the problem. Stable prices have been the problem for, now, more than five and a half years.

"So what the committee decided to do today was take an action to ensure a timely return to our price stability."

The Dow Jones took the brunt of the sell-off on Wednesday, despite the Fed move being widely anticipated. The benchmark index fell 631.21 points, or 1.21 percent, to close at 51,461.90 on volume of 390.831 million. The index traded between 51,186.67 and 52,173.70 during the session, against a 52-week low of 45,057.28 and a high of 54,744.33.

The Standard and Poor's 500 slipped 33.90 points, or 0.45 percent, to 7,551.83 on volume of 2.858 billion. It moved between 7,507.77 and 7,626.79 on the day, with a 52-week low of 6,316.91 and a high of 7,816.70.

The NASDAQ Composite posted the smallest decline of the major U.S. indexes, dipping just 3.15 points, or 0.01 percent, to 25,978.42 on volume of 8.82 billion. The technology-heavy index ranged from 25,802.96 to 26,225.09 during the session, with a 52-week low of 20,690.25 and a high of 27,190.21.

The session's losses were led by the Dow, whose 1.21 percent decline far outpaced the modest pullback in the NASDAQ. The divergence suggested that while technology names held relatively steady, weakness was concentrated in the blue-chip industrials and financials that make up the price-weighted Dow.

Trading volumes were heavy across the board, with the S&P 500 and NASDAQ both seeing multi-billion-share turnover. The broadly negative close left all three U.S. benchmarks below their session highs and well short of their 52-week peaks, though each remained comfortably above its annual low.

U.S. Dollar Rallies Across the Board Wednesday as Major Currencies Retreat

The U.S. dollar strengthened against every major counterpart on Wednesday, with the greenback posting gains ranging from roughly half a percent to more than three-quarters of a percent as traders pushed the currency broadly higher, following the Federal Reserve rate hike.

The euro weakened against the dollar, with EUR-USD falling 0.01 to 1.1472, a decline of 0.62 percent as of the 4:00 PM fixing.

The dollar made its largest advance against the Swiss franc, with USD-CHF rising 0.76 percent to 0.8249.

The greenback also posted a 0.68 percent gain against the Japanese yen, with USD-JPY climbing to 156.1600.

Sterling slid by the same margin, as GBP-USD dropped 0.68 percent to 1.3387.

The Australian dollar gave up 0.59 percent against the U.S. currency, with AUD-USD easing to 0.7090.

The dollar's gains were somewhat more modest against its northern neighbor, as USD-CAD rose 0.49 percent to 1.3988.

Wednesday's session marked a uniformly firm tone for the dollar, with no major currency managing to hold its ground against the greenback. The breadth of the move — spanning Europe, Japan, Australia and Canada — suggested a broad repricing of dollar exposure rather than weakness tied to any single counterparty.

Global Markets Close Mostly Higher Wednesday as Asia-Pacific Rallies, UK and Europe Post Modest Gains

World stock markets outside the U.S. finished mostly higher on Wednesday, with strong advances across Asia-Pacific benchmarks and a broadly positive session in Europe, while a few indexes slipped into negative territory.

In Canada, the S&P/TSX Composite index dropped 90.80 points, or 0.26 percent, to 35,491.27 on volume of 264.63 million. It traded between 35,243.32 and 35,781.75, against a 52-week low of 29,201.90 and a high of 37,069.10.

The FTSE 100 in London rose 30.34 points, or 0.28 percent, to close at 10,688.47. The session saw a low of 10,655.82, a high of 10,735.34, a 52-week low of 9,177.10 and a 52-week high of 10,989.50.

In Europe, Germany's DAX P gained 135.47 points, or 0.53 percent, to end at 25,537.75, after trading between 25,361.70 and 25,599.07. Its 52-week range stands at 21,863.81 to 26,618.74.

The CAC 40 in Paris added 50.31 points, or 0.62 percent, to finish at 8,140.59. The index moved between 8,088.13 and 8,155.51 on the day, with a 52-week low of 7,505.27 and a high of 8,755.03.

The EURO STOXX 50 I advanced 30.00 points, or 0.48 percent, to 6,266.50, within a daily range of 6,240.66 to 6,282.56. Its 52-week low and high were 5,361.11 and 6,577.20, respectively.

The Euronext 100 Index rose 10.07 points, or 0.54 percent, to 1,887.08, after trading between 1,877.68 and 1,892.83. The index's 52-week range was 1,612.07 to 1,984.60.

Belgium's BEL 20 edged up 9.14 points, or 0.16 percent, to 5,733.49. It traded between 5,733.02 and 5,771.43 on the day, with a 52-week low of 4,631.38 and a high of 5,905.83.

In Asia, Hong Kong's HANG SENG INDEX added 46.54 points, or 0.19 percent, to close at 24,713.78. The index ranged from 24,574.75 to 24,789.91 during the session, against a 52-week low of 22,518.00 and a high of 28,056.10.

Mainland China's SSE Composite Index gained 27.32 points, or 0.71 percent, to 3,891.60 on volume of 2.963 billion, trading between 3,842.72 and 3,894.66. Its 52-week low was 3,741.11 and its high 4,258.86.

In Japan, the Nikkei 225 closed at its session high, rising 438.90 points, or 0.69 percent, to 63,923.00. The index traded as low as 63,209.92 on the day, with a 52-week low of 44,357.65 and a high of 72,831.73.

Singapore's STI Index was the region's notable decliner, slipping 3.23 points, or 0.06 percent, to 5,635.41. It traded between 5,627.19 and 5,687.63, with a 52-week range of 4,264.99 to 5,828.50.

In Australia, the S&P/ASX 200 [XJO] gained 24.00 points, or 0.28 percent, to 8,696.50, moving between 8,668.10 and 8,705.60. Its 52-week low stood at 8,262.40 and its high at 9,296.70. The ALL ORDINARIES [XAO] also rose 25.20 points, or 0.28 percent, to 8,874.50, after trading between 8,841.70 and 8,879.10, with a 52-week range of 8,454.90 to 9,474.80. Neighbouring New Zealand's S&P/NZX 50 INDEX GROSS rose 138.50 points, or 1.03 percent, to 13,622.72, after moving between 13,495.59 and 13,642.31. Its 52-week range was 12,689.78 to 14,069.22.

India's S&P BSE SENSEX climbed 332.63 points, or 0.45 percent, to 74,336.45, within a daily range of 73,981.33 to 74,505.86. Its 52-week low was 71,545.81 and its high 86,159.02.

In Indonesia on Wednesday, the IDX COMPOSITE fell 24.30 points, or 0.38 percent, to 6,436.85. The index traded between 6,436.85 and 6,535.46, with a 52-week low of 5,317.91 and a high of 9,174.47.

Malaysia's FTSE Bursa Malaysia KLCI was unchanged, closing at 1,679.21 with a 0.00 percent move. It traded between 1,678.06 and 1,694.91, against a 52-week low of 1,595.04 and a high of 1,771.25.

In South Korea, the KOSPI Composite Index posted one of the strongest gains, rising 90.71 points, or 1.37 percent, to 6,717.97. Its 52-week high stood at 9,385.59.

Taiwan's TSEC CAPITALIZATION WEIGHTED ST added 337.41 points, or 0.74 percent, to 45,848.90, within a daily range of 45,546.56 to 46,077.82. The index's 52-week low was 25,422.96 and its high 48,218.87.

In the Middle East, in Israel, the TA-125 rose 42.59 points, or 1.04 percent, to 4,125.35, trading between 4,090.35 and 4,127.46. Its 52-week range was 3,023.40 to 4,588.51.

Egypt's EGX 30 Price Return Index slipped 86.50 points, or 0.16 percent, to 54,822.70, with volume of 238.778 million. The index traded between 54,590.50 and 55,100.60, matching both its 52-week low and high.

In South Africa, the Top 40 USD Net TRI Index declined 33.59 points, or 0.48 percent, to 7,003.45, after trading between 6,962.20 and 7,097.07. Its 52-week range was 5,968.01 to 8,184.71.

Traders and investors pointed to broad-based buying in technology and industrial shares across Asia, while European gains were more measured. The mixed performance in Southeast Asia and Africa underscored the uneven nature of the global session, with most major benchmarks outside North America, nevertheless, finishing in positive territory.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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