Major indexes in the US stock market ended lower Wednesday after the Federal Reserve signaled that it would raise interest rates in 2023.
The Dow Jones Industrial Average fell 265 points, or 0.7%, to 34,033. The S&P 500 slid 22 points to 4,223, while the Nasdaq dropped 33 points to 14,039.
Precious metals plummeted as gold lost 1.6% to $1,829 per ounce and silver fell 1.2% to $27.3 an ounce. Bitcoin decreased 2.9% to under $38,700.
The sudden decline came after the Fed signaled earlier that it would raise interest rates in 2023 to tame rising inflation. Its federal funds rate projection for 2023 was revised up to 0.6%, which means it could make two rate hikes of 0.25% each.
The central bank also said it estimates inflation to come in at 3.4% this year, up from its 2.4% March estimate.
Investors flocked to US dollar and Treasury notes amid fears that the central bank would increase its benchmark interest rate.
The dollar index gained 0.8% to 91.3, while the yield on the 10-year US Treasury note jumped 5% to 1,575%.
The VIX volatility index, also known as the fear index, soared 6.6% to 18.15.
By Ovunc Kutlu