US stocks fall after Fed indicates it is undecided on pausing rate hikes

By Ovunc Kutlu

ISTANBUL (AA) - US stocks closed lower after the Federal Reserve said it is undecided on pausing interest rate hikes after raising rates Wednesday.

The Dow Jones Industrial Average was down 270 points, or 0.8%, to finish the day at 33,414. The S&P 500 fell 28 points, or 0.7%, to 4,090.

The Nasdaq decreased 55 points, or 0.46%, to 12,025.

The exchanges fell after the Fed made another hike of 25 basis points, carrying the target range for the federal funds rate to between 5% and 5.25% -- its highest since August 2007.

Although Fed Chair Jerome Powell said in a news conference that inflation has "moderated somewhat" since mid-2022, he noted "pressures run high" and added "decision to pause rate hikes not yet made."

The VIX volatility index, also known as the fear index, rose 3.1% to 18.33. Meanwhile, the 10-year US Treasury yield plummeted 2.2% to 3.362%.

The dollar index shed 0.6% to 101.36, while the euro gained 0.5% to $1.1053 against the greenback.

Precious metals were on the rise, with the gold rising 0.7% to $2,031 per ounce and silver adding 0.3% to $25.48.

Oil prices plummeted more than 4.4% with global benchmark Brent crude price at $72.03 per barrel and the US benchmark West Texas Intermediate crude at $68.27.