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As on : 17-Sep-2026

Market Commentary - Foreign Markets
17-Sep-2026 11:46

U.S. Stocks slip as Fed rate hike drags market

US stocks mostly fell on Wednesday after the Federal Reserve raised interest rates for the first time in more than three years and Chair Kevin Warsh warned of high inflation. The Dow Jones Industrial Average decreased by 631.33 points, or 1.21%, to 51,461.78. The S&P 500 fell 33.92 points, or 0.45%, to 7,551.81, while the Nasdaq Composite was nearly flat at 25,978.43.

The Fed raised its federal funds rate by 25 basis points to a range of 3.75%-4%, its first increase since July 2023, with a prediction of one more quarter-point hike this year. This decision affected risk appetite, although a drop in crude oil prices helped limit losses.

Additionally, US retail and food services sales rose 1.2% in August to $773.9 billion, a 6.0% increase from August 2025. Year-over-year sales from June 2026 to August 2026 were also up by 6.0%.

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