US stocks end mixed after Fed signals more rate hikes to come

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U.S. stocks ended mixed on Wednesday after the Federal Reserve kept U.S. interest rates unchanged but signaled in new economic projections that borrowing costs will likely rise by another half of a percentage point by the end of this year.

anymore,” said Sam Stovall, Chief Investment Strategist at CFRA Research. “However, it does seem as if the FOMC members have become even more hawkish since the last meeting, and I think that has taken investors by surprise.”

Heavyweight chipmakers Nvidia and Broadcom both rallied more than 4 percent and closed at their highest levels ever, lifting the Nasdaq and S&P 500. The Philadelphia semiconductor index jumped 1.5 percent, bringing its gain in 2023 to 48 percent. The S&P 500 health sector index dropped 1.1 percent and the S&P 500 managed healthcare index fell 6.9 percent, closing at its lowest in a year.

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