Dow Jones tumbles over 700 points after Fed raises rates
Business
The Dow Jones tumbled over 700 points on Wednesday after the US Federal Reserve raised interest rates by 25 basis points.
Other big indexes like the S&P 500 and Nasdaq also slipped, as investors got jittery about where rates (and the economy) might be headed next.
Treasury yields climb above 5%
The Fed raised its main rate to a range of 3.75% to 4%, and the Fed chair cautioned that inflation could stick around longer than anyone hoped.
That sent Treasury yields above 5% and made investors rethink their strategies, especially since a stronger dollar is now putting extra pressure on companies earning money overseas.
Rate-sensitive sectors like industrials and financials reflected worries about higher borrowing costs and slower growth ahead.