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Stocks fall after the Fed hikes rates

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Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., February 13, 2018.  REUTERS/Lucas Jackson
Traders
work on the floor of the New York Stock Exchange shortly after
the opening bell in New York

Thomson
Reuters


Wall Street wiped out gains Wednesday after earlier climbing to
near record highs. Bank stocks took a beating after the Federal
Reserve announced a widely expected interest-rate increase. The
dollar edged higher, and Treasury yields fell. 

Here’s the scoreboard:

Dow Jones industrial
average
26,391.10 -101.11
(-0.38%)

S&P
500
:
 2,907.43 -8.13 (-0.28%)

Nasdaq
Composite
85.85 USD -1.83 (-2.09%)

  1. The Federal Reserve
    raised its benchmark interest rate
    , marking its third
    increase this year and eighth since the financial
    crisis. 
    The central bank dropped language
    describing its approach as “accommodative” when announcing a
    new target range of 2-2.25% and signaled one more hike this
    year. Here’s
    a look at how the Federal Reserve makes policy decisions and
    why it matters.
  2. As NAFTA progress
    stalls
    , the Trump administration appears to be doubling
    down on threats to exclude Canada from a final
    deal. 
    The US is expected to publish text of a
    bilateral trade agreement with Mexico on Friday,
    according to Bloomberg,
     which Canada could presumably
    join if it makes concessions. Key sticking points include
    access to Canada’s protected dairy market and rules on
    resolving trade disputes.
  3. After declining for two months, US home sales
    made a comeback
    in August.
    Permits for
    single-family housing rose 3.5% last month, the Commerce
    Department said. But with rising mortgage and home prices, data
    shows the underlying trend is weakening.
  4. Without presenting evidence, President Donald Trump
    accused Beijing of interfering with the US midterm
    elections. 
    In opening remarks at a United Nations
    Security Council meeting, he
    claimed
    Beijing was  attempting to hurt him
    politically to retaliate against
    trade escalations
    . China quickly denied the
    allegation. 

And a look at the upcoming economic calendar: 

  • The US reports on final GDP, trade, and manufacturing
    activity. 
  • Speeches from several central bank leaders: the Fed’s
    Powell, ECB’s Draghi, and BoC’s Poloz.
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