US Federal Reserve raises interest rate by another 0.25% – UAE, Kuwait, Bahrain central banks raise too

US Federal Reserve raises interest rate by another 0.25% – UAE, Kuwait, Bahrain central banks raise too

US stocks have muted reaction

US stocks were fairly subdued on Wednesday following a Federal Reserve rate hike that pushed borrowing costs to their highest since the global financial crisis.

The Dow Jones Industrial Average rose 26.08 points, or 0.07%, to 35,464.15, the S&P 500 lost 8.5 points, or 0.19%, at 4,558.96 and the Nasdaq Composite dropped 45.25 points, or 0.32%, to 14,099.31.

The US dollar fell against a basket of currencies. Interest-rate sensitive two-year yields fell to 4.883%, from around 4.910% before the statement. Benchmark 10-year yields fell to 3.881%, from around 3.900%.

The closely watched yield curve between two-year and 10-year notes was little changed at minus 101 basis points.

- Reuters