Stocks pare gains after Fed delivers 75 basis point rate hike

Stocks trimmed gains Wednesday after initially holding their ground afterthe Federal Reserve delivered a 75 basis point hike in its fed funds rate — the largest such move since 1994 but one that was widely expected after a hotter-than-expected inflation reading at the end of last week. The Dow Jones Industrial Average gave up a gain of around 228 points to dip into negative territory, trading fractionally lower. The S&P 500 was up 0.3% versus a 1.1% gain ahead of the announcement, while the Nasdaq Composite remained up 0.9% versus a rise of 1.9% earlier. Stocks were on track to snap a brutal five-day losing streak seen in the runup to Wednesday’s decision. Treasury yields rose with the 10-year at 3.433% versus 3.395% just ahead of the announcement.

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