Stocks end lower as Fed hikes rates to highest level in 16 years

U.S. stocks closed near session lows on Wednesday after the Federal Reserve raised rates as expect by another 25 basis points, bringing the policy rate to its highest level since 2007. The Dow Jones Industrial Average
DJIA,
-0.86%
shed about 270 points, or 0.8%, ending near 33,414, according to preliminary FactSet data. The S&P 500 index
SPX,
-0.72%
shed 0.7% and the Nasdaq Composite Index closed 0.5% lower, with shares of regional banks ending the session off by about 34% on the year. Fed Chair Jerome Powell wouldn’t rule out additional rate hikes, but said the central bank will continue to monitor tightening credit conditions following the collapse of Silicon Valley Bank and Signature Bank in early March. First Republic Bank also was seized by regulators on Monday and its assets were sold to JPMorgan Chase & Co.
JPM,
-1.32%,
putting a spotlight on the costs of helping alleviate stress at banks as deposits flee. Investors were able to fetch 5% on 6-month Treasury notes
TMUBMUSD06M,
4.987%
on Wednesday, while the 10-year Treasury rate was around 3.35%.