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Wall Street closed lower on Wednesday, dragged down by energy and financial stocks. Markets reacted sharply to the Fed raising interest rates for the first time in over two years. Two of the three benchmark indexes ended in the red, while one remained unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 631.21 points, or 1.2%, to close at 51,461.9. Twenty-one components of the 30-stock index ended in negative territory, while nine ended in positive.
The tech-heavy Nasdaq Composite slid 3.15 points, remaining virtually unchanged, to close at 25,978.43.
The S&P 500 lost 33.92 points, or 0.5%, to close at 7,551.81. Eight of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) declined 3%, 1.6% and 0.7%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.1%.
The fear gauge CBOE Volatility Index (VIX) jumped 3% to 17.71. A total of 18.4 billion shares were traded on Wednesday, higher than the last 20-session average of 15.3 billion. Decliners outnumbered advancers by a 1.75-to-1 ratio on the NYSE and by a 1.48-to-1 ratio on the Nasdaq.
Wall Street Falls After Fed Rate Hike
Wall Street ended lower on Wednesday after the Fed raised interest rates for the first time in more than three years, signaling that borrowing costs could rise further as policymakers battle persistent inflation. The Fed increased its benchmark interest-rate target by 25 basis points to 3.75-4.00% in a unanimous decision. Its latest projections showed that 16 of 18 policymakers expect at least one more quarter-point increase by year-end, raising concerns about tighter financial conditions.
Fed Chair Kevin Warsh said the economy had strengthened since the Fed's June meeting, with underlying growth higher and the labor market near full employment. However, he stressed that inflation remains the central problem, saying recent readings had not shown meaningful improvement.
Warsh's firm stance on inflation reinforced expectations that the Fed could continue tightening policy. Stocks weakened during his press conference, while Treasury yields climbed, with the 10-year yield ending above 5%. Investors also remained concerned about elevated oil prices and geopolitical tensions, which could keep inflationary pressures high.
Oil Prices Fall as Saudi Supply Fears Ease
Oil prices declined Wednesday as reports of additional Saudi crude shipments eased concerns over a prolonged disruption to global supplies, while a smaller-than-expected draw in U.S. crude inventories added to the pressure. Brent crude fell $2.92, or 2.7%, to settle at $105.83 a barrel, while WTI crude declined $3.40, or 3.2%, to $102.43.
Saudi Arabia is reportedly offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman's Sohar port. The move could partly offset supply disruptions following attacks on the country's East-West pipeline, which feeds the Red Sea export hub of Yanbu.
Per the U.S. Census Bureau, business inventories for July increased 0.8%. The number for June was revised up to an increase of 0.1%.
Per a government report, for the week ending Sept. 11, 2026, Commercial crude oil inventories (excluding the Strategic Petroleum Reserve) decreased 0.6 million barrels to 423.4 million barrels. The number for the week ended Sept. 4 remained unrevised at a decrease of 0.4 million barrels.
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Stock Market News for Sep 17, 2026
Wall Street closed lower on Wednesday, dragged down by energy and financial stocks. Markets reacted sharply to the Fed raising interest rates for the first time in over two years. Two of the three benchmark indexes ended in the red, while one remained unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 631.21 points, or 1.2%, to close at 51,461.9. Twenty-one components of the 30-stock index ended in negative territory, while nine ended in positive.
The tech-heavy Nasdaq Composite slid 3.15 points, remaining virtually unchanged, to close at 25,978.43.
The S&P 500 lost 33.92 points, or 0.5%, to close at 7,551.81. Eight of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) declined 3%, 1.6% and 0.7%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.1%.
The fear gauge CBOE Volatility Index (VIX) jumped 3% to 17.71. A total of 18.4 billion shares were traded on Wednesday, higher than the last 20-session average of 15.3 billion. Decliners outnumbered advancers by a 1.75-to-1 ratio on the NYSE and by a 1.48-to-1 ratio on the Nasdaq.
Wall Street Falls After Fed Rate Hike
Wall Street ended lower on Wednesday after the Fed raised interest rates for the first time in more than three years, signaling that borrowing costs could rise further as policymakers battle persistent inflation. The Fed increased its benchmark interest-rate target by 25 basis points to 3.75-4.00% in a unanimous decision. Its latest projections showed that 16 of 18 policymakers expect at least one more quarter-point increase by year-end, raising concerns about tighter financial conditions.
Fed Chair Kevin Warsh said the economy had strengthened since the Fed's June meeting, with underlying growth higher and the labor market near full employment. However, he stressed that inflation remains the central problem, saying recent readings had not shown meaningful improvement.
Warsh's firm stance on inflation reinforced expectations that the Fed could continue tightening policy. Stocks weakened during his press conference, while Treasury yields climbed, with the 10-year yield ending above 5%. Investors also remained concerned about elevated oil prices and geopolitical tensions, which could keep inflationary pressures high.
Oil Prices Fall as Saudi Supply Fears Ease
Oil prices declined Wednesday as reports of additional Saudi crude shipments eased concerns over a prolonged disruption to global supplies, while a smaller-than-expected draw in U.S. crude inventories added to the pressure. Brent crude fell $2.92, or 2.7%, to settle at $105.83 a barrel, while WTI crude declined $3.40, or 3.2%, to $102.43.
Saudi Arabia is reportedly offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman's Sohar port. The move could partly offset supply disruptions following attacks on the country's East-West pipeline, which feeds the Red Sea export hub of Yanbu.
Consequently, ExxonMobil Holdings Corporation (XOM - Free Report) and Occidental Petroleum Corporation (OXY - Free Report) slumped 3.5% and 6.6%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Per the U.S. Census Bureau, business inventories for July increased 0.8%. The number for June was revised up to an increase of 0.1%.
Per a government report, for the week ending Sept. 11, 2026, Commercial crude oil inventories (excluding the Strategic Petroleum Reserve) decreased 0.6 million barrels to 423.4 million barrels. The number for the week ended Sept. 4 remained unrevised at a decrease of 0.4 million barrels.