Stocks Closed Lower after Fed Hiked Rates

U.S. stocks closed lower on Wednesday, after the Federal Reserve signaled a faster pace of interest rate hikes than had been previously forecast. The Dow Jones Industrial Average dropped 118.55 points, or 0.60%, to 19,792.66. The S&P 500 fell 18.44 point, or 0.81%, to 2,253.28. The Nasdaq Composite lost 27.16 points, or 0.50%, to 5,436.67.

The Federal Reserve on Wednesday raised a key U.S. interest rate for the first time in a year and took a slightly more hawkish stance by saying it expects more tightening in 2017 than it did three months ago. The U.S. central bank raised its key short-term rate to a range of 0.5%-0.75% from 0.25% to 0.5%.

Oil futures settled lower Wednesday for the first time in five sessions, pressured as a monthly report from OPEC showed that member output rose in November. January West Texas Intermediate crude fell $1.94 cents, or 3.7%, to settle at $51.04 a barrel. February Brent crude shed $1.82, or 3.3%, to $53.90 a barrel.

Exxon Mobil Corp. said Darren Woods will succeed Rex Tillerson as chairman and chief executive of the company, after Mr. Tillerson was tapped by President-elect Donald Trump to serve as the next U.S.