Wall Street closed lower on Wednesday, 16 September, after the US Federal Reserve raised interest rates for the first time in more than three years and signalled the possibility of further increases in its effort to bring persistently elevated inflation under control.
The S&P 500 ended the session down 0.45% at 7,551.81 points, while the Dow Jones Industrial Average fell 1.21% to 51,461.90 points. The Nasdaq Composite was nearly flat, shedding just 0.01% to close at 25,978.42 points.
The major US indices had traded in positive territory for much of the session before reversing course following the Fed’s decision and the accompanying commentary. The Federal Reserve raised its benchmark interest rate by 25 basis points, setting the target range at 3.75% to 4.00%, in a unanimous decision supported by all 12 voting members.
It was the first rate increase by the Fed since July 2023. In its statement, the central bank said inflation remains elevated and that the move should help return price growth to its 2% target more quickly. The Fed added that economic activity continues to expand at a solid pace and that employment gains have kept up with growth in the labour force.
Markets interpreted the Fed’s message as a signal that the current tightening cycle may not end with this decision. According to Reuters, investors moved to price in roughly a 50% probability of another rate increase in October.
The reaction was equally visible in the US debt market. The yield on the two-year Treasury note — which is more sensitive to monetary policy expectations — rose to around 4.73%, while the ten-year rate reached 5%, according to data cited by Reuters.
The Fed’s decision comes amid heightened inflationary pressure, driven in part by rising energy prices and oil supply disruptions linked to geopolitical tensions.
Despite that backdrop, Brent crude fell 2.69% during the session to US$105.83 per barrel, after Saudi Arabia signalled it was prepared to make additional crude supplies available.
The combination of higher interest rates and the prospect of further tightening weighed on equities, as investors reassessed the impact of monetary policy on corporate valuations and borrowing costs.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/17/mercados/wall-street-fecha-em-baixa-apos-fed-subir-juros-pela-primeira-vez-desde-2023/
