By Andrea Hargraves 
Wall Street finished the Wednesday session in the red. The fact that the US Federal Reserve avoided a massive hike in the federal funds rate, opting for a 50 basis point hike, was not enough to keep the three major indices going on Tuesday’s wave of optimism.
The Dow Jones Industrial Average fell 0.42% to 33,965.69 points, while the Standard & Poor’s 500 Index fell 0.61% to 3,995.26 points. The Nasdaq Technology Index lost 0.76%, to 11,170.89 points.
The US central bank raised the benchmark interest rate by 50 basis points and confirmed that it will continue to reduce the debt held on the balance sheet. In addition to this decision, the Fed revised upward inflation expectations and GDP.
It also estimated the peak federal funds rate, which should come in at 5.1% next year, up from the 4.6% previously estimated. In addition to the so-called “point chart”, the end of the negotiations was marked by a warning from Powell, whose market expectations of inflation and price slowdown in October and November are still not enough to reverse the restrictive monetary policy. .
Powell continues to predict the need for “further increases” in interest rates and warned that monetary policy has not yet entered a level that is “tight enough”.
Among the major market movements, Tesla stocks stand out. Electric car makers fell 2.58%, after renewing a two-year low on the day, in response to harsh criticism from Musk’s followers over his focus on managing Twitter at Tesla’s expense.
Even KoGuan Leo, Tesla’s third-largest individual shareholder who described himself on the social network as a “fanboy,” posted a tweet deeming “Elon gave up on Tesla, Tesla doesn’t have a CEO.”