The Dow Jones Industrial Average closed at 23,323.66 on Wednesday with a loss of 351.98 points or -1.49%. The S&P 500 closed at 2,506.96 for a loss of 39.20 points or -1.54%. The Nasdaq Composite closed at 6,636.83 for a loss of 147.08 points or -2.17%. The VIX Volatility Index was lower at 25.34 for a loss of 0.24 points or -0.94%.
Wednesday’s market movers
The Federal Reserve reported it would raise the federal funds rate to a range between 2.25% and 2.5%. The increase marks the ninth rate increase since the Fed began raising rates in December 2015. The Fed has also signaled that monetary policy tightening is likely to ease in 2019.
The day’s losses renewed correction territory concerns. Technology stocks showed the greatest losses with the Nasdaq down 2.17% and the S&P 500 technology sector down 1.98%. Other sectors leading losses in the S&P 500 included consumer discretionary, industrials and materials.
Economic reports affecting market trading included the following:
- The MBA Mortgage Applications Index decreased 5.8%.
- The Current Account Report, which discusses exports and imports, showed a deficit of $124.8 billion for the third quarter.
- Existing home sales increased 1.9% in November to a seasonally adjusted annual rate of 5.32 million.
- The Federal Reserve raised the federal funds rate to a range from 2.25% to 2.5% following its December monetary policy meeting. It also released economic projections.
In the Dow Jones Industrial Average, the following stocks led losses:
- Intel (INTC, Financial) -4.55%
- Apple (AAPL, Financial) -3.12%
- Nike (NKE, Financial) -3.01%
- Boeing (BA, Financial) -2.59%
- Walgreens Boots Alliance (WBA, Financial) -2.37%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,349.23 for a loss of 27.95 points or -2.03%. The S&P 600 closed at 840.46 for a loss of 18.40 points or -2.14%. The Dow Jones Small-Cap Growth TSM Index closed at 8,397.07 for a loss of 168.61 points or -1.97%. The Dow Jones Small-Cap Value TSM Index closed at 8,612.25 for a loss of 164.59 points or -1.88%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,665.72 for a loss of 29.05 points or -1.71%; the S&P 100 at 1,113.55 for a loss of 18.48 points or -1.63%; the Russell 3000 at 1,472.18 for a loss of 23.54 points or -1.57%; the Russell 1000 at 1,384.27 for a loss of 21.64 points or -1.54%; the Wilshire 5000 at 25,752.60 for a loss of 405.64 points or -1.55%; and the Dow Jones U.S. Select Dividend Index at 644.93 for a loss of 6.71 points or -1.03%.
