U.S. stocks closed mostly lower Wednesday, failing to defend gains on the back of the Federal Reserve’'s decision to keep key interest rates unchanged, as widely expected.
The central bank also signaled no further rate hikes this year, in line with its views of tame inflation and slower economic growth. But the Fed’'s latest stance battered financial shares as the industry tends to suffer in a low-rate environment.
The Dow Jones Industrial Average fell 141.71 points, or 0.6%, to 25,745.67. The S&P 500 index shed 8.34 points, or 0.3%, to 2,824.23 with the financial sector falling 2.1%.
The Invesco KBW Bank ETF fell 3%, its worst one-day decline since Dec. 24, and the SPDR S&P Regional Banking ETF lost 3.4%, its worst drop since Dec. 4.
The Nasdaq Composite Index flipped higher, adding 5.02 points to 7,728.97.
Source : Marketwatch