Traders work as a television monitor displays Federal Reserve Chair Janet Yellen announcing the Fed's decision to raise interest rates on the floor of the New York Stock Exchange (NYSE) in New York City
US stocks fell for the fourth time in five days as selling in technology shares worsened, sending the Nasdaq indexes lower by more than 0.6 percent. The dollar advanced with Treasury yields as traders digested the more hawkish tone struck by the Federal Reserve.
Mega-cap tech shares from Alphabet Inc. to Facebook Inc. retreated, as American equities fell to a two-week low. European stocks dropped to April lows, with miners selling off as Bloomberg’s commodity index fell to the lowest in more than a year. The greenback strengthened and 10-year Treasury yields climbed as the Fed suggested the strength of the labor market will ultimately prevail over weakness in inflation. Crude traded near a seven-month low.
Investors resumed selling the major technology shares that have contributed most to equity records this year, as the threat of higher interest rates prompted a shift from growth into value shares. Softening commodity prices did little bolster arguments that inflation will pick up the pace, even as the U.S. labor market remains on strong footing -- raising the specter that central bank officials made a policy error.
Meanwhile, Washington remained in focus as the special counsel investigating Russia’s interference in the 2016 election was said to be planning to interview two top U.S. intelligence officials about whether President Donald Trump sought their help to get the FBI to back off a related probe of former National Security Adviser Michael Flynn.
