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Investing.com — The S&P 500 fell Wednesday, after cutting intraday gains as surging Treasury yields dented growth sectors of the market including tech after the Federal Reserve left interest rates unchanged, but leaned into higher-for-longer rate regime.
The fell 0.5%, the gained 0.1%, 49 points, fell 1%.
Federal Reserve skips rate hike, but leans into higher-for-longer stance
The Federal Reserve kept rates steady on Wednesday, and kept its forecast for one more rate hike this year, but signaled a higher-for-longer rate regime by reining in the number of rate cuts for next year.
“The bottom-line is that the Fed is embracing the ‘higher for longer’ approach to getting inflation down to target,” Jefferies said in a note.
Treasury yields rebound to close at more than decade highs to pressure big tech
Treasury yields including the and yields cut intraday losses and surged to close at fresh cycle highs after the Fed decision.
The 2-year Treasury yield, which is more sensitive to interest rate decisions, closed at 5.120%, the highest level since 2006, after falling to a low of 5.049% on the day.
Growth sectors of the marketing including big tech came under pressure from rising Treasury yields, paced by a more than 2% in Alphabet (NASDAQ:).
Meta Platforms (NASDAQ:) and Apple (NASDAQ:) fell 1%.
Instacart loses some lustre post-IPO
Instacart ( Maplebear Inc.) (NASDAQ:) fell more than 10% to trade just above its IPO price of $30.
The online grocery delivery platform made its debut on Tuesday, rising as much as 40% on initial trading before ending the day up 12%.
The wobble in the stock comes just as analysts at Needham started coverage on the stock with a hold rating, citing rising competition and slowing online grocery sales.
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