Stock Market Tumbles as Federal Reserve Raises Rates and Retail Sales Slide

U.S. stocks took a downward turn after another rate hike by the Federal Reserve. The S&P fell 2.49%, the Dow 2.25% and the Nasdaq 3.23%.

The Federal Reserve raised short-term rates by 0.50%, bringing benchmark rates to the highest level since 2007. Plus, there are hints that even more hikes can come in 2023.

In addition, the latest retail sales in November fell more than expected, dropping 0.6%. High inflation and rising interest rates are hurting household budgets.

“Over the course of the year, we have taken forceful actions to tighten the stance of monetary policy,” Fed chair Jerome Powell said on Wednesday. “We have covered a lot of ground, and the full effects of our rapid tightening so far are yet to be felt. Even so, we have more work to do.”