US stocks slump on Fed's rate hike amid banking crisis

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Wall Street stocks tumble into the red after US Federal Reserve unveils a ninth straight interest rate hike despite worries surrounding the banking sector

Traders react as Federal Reserve Chair Jerome Powell is seen delivering remarks on a screen, on the floor of the New York Stock Exchange in New York City, US, March 22, 2023.

Wall Street stocks have tumbled into the red after the US Federal Reserve unveiled a ninth straight interest rate hike despite worries surrounding the banking sector. The US central bank raised the benchmark lending rate by a quarter-point on Wednesday, underscoring its determination to tackle stubborn inflation.

But policymakers are also trying to avoid further upheaval in the commercial banking sector, following the swift collapse of Silicon Valley Bank and fears of contagion. The Dow Jones Industrial Average ended 1.6 percent lower at 32,028.90 while the broad-based S&P 500 Index plunged 1.7 percent to 3,936.82.Fed Chair Jerome Powell stressed in a press conference that the central bank is committed to learning the lessons from this episode of banking turmoil, while noting that financial conditions have tightened as well.

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What did they really thing was going to happen. I think it was signaled that rate hike was on way. Maybe their excuse to cut and run from some stocks. Banking issues still exist and sector is heading for some deep down side in short term.

What did they really thing was going to happen. I think it was signaled that rate hike was on way. Maybe their excuse to cut and run from some stocks. Banking issues still exist and sector is heading for some deep down side in short term.

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