Stocks fall after Fed announcement

Stocks fell and bond yields rose, with the Federal Reserve signaling interest rates will be higher for longer after deciding to stay on hold Wednesday.

Big Tech led losses, with the Nasdaq 100 down 1.5%. The S&P 500 dropped almost 1%.

Treasury two-year yields, which are more sensitive to imminent Fed moves, hit the highest since 2006.

Swap contracts priced in fewer rate cuts next year than previously anticipated. The dollar erased losses.

Oil retreated, following a rally that sent Brent to $95 a barrel earlier this week.

The Fed held its target range for the federal funds rate at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023.

Policymakers also see less easing next year.

Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.”