Stocks Ended Mostly Lower after Fed Rate Hike

U.S. stocks closed mostly lower on Wednesday after the Federal Reserve raised its key interest rate by a quarter of a percentage point while signaling at least one more rate hike later this year. The Dow Jones Industrial Average advanced 46.09 points, or 0.22%, to 21,374.56. The S&P 500 was down 2.43 points, or 0.10%, to 2,437.92. The Nasdaq Composite declined 25.48 points, or 0.41%, to 6,194.89.

The Federal Reserve lifted a key U.S. interest rate and laid out a plan to shrink its massive $4.5 trillion balance sheet starting “this year,” a pair of moves reflecting its view that an economic expansion now entering its ninth year no longer needs so much propping up.

Oil prices dropped to their lowest settlement in seven months Wednesday, after U.S. government data showed a smaller-than-expected weekly decline in domestic supplies and an increase in gasoline stockpiles and crude production.July West Texas Intermediate crude fell $1.73, or 3.7%, to settle at $44.73 a barrel. August Brent crude lost $1.72, or 3.5%, to $47 a barrel.