US stocks swung wildly on Wednesday as traders responded the the Federal Reserve’s decision to raise its key interest rate 25 basis points.
The Dow jumped quickly to an all-time high immediately after the decision before quickly reversing course. As of 3:03 p.m. ET, the Dow was down 88 points. The S&P and Nasdaq composite had gained 12.5 and 14 points respectively.
The Fed increased its projections for GDP growth and inflation slightly, while also increasing the number of expected rate hikes in 2017 to three from their previous projection of two hikes next year.
The Dow closed at an all-time high on Tuesday – its 16th since the election. Although it missed the 20,000 mark, the S&P 500 quietly hit another milestone: Bespoke Investment Group noted that members’ market cap crossed $20 trillion for the first time.
The other economic data released on Wednesday were mixed. Retail sales rose 0.1% (0.3% forecast) in November. Industrial production declined by 0.4% in November, while producer prices reported their largest gain in five months.