Dow turns negative, Treasury yield curve flattens after Fed delivers quarter-point rate hike

Stocks erased or trimmed gains in afternoon trade Wednesday after the Federal Reserve, as expected, delivered a quarter-point rate increase. The Dow Jones Industrial Average was down 27 points, or 0.1%, near 33,519. The blue-chip gauge was up around 200 points just ahead of the announcement. The S&P 500 was up 0.2% at 4,272, while the Nasdaq Composite remained higher by 0.9%. The yield curve flattened significantly, with the 2-year Treasury yield jumping around 13 basis points on the day to 1.983%, while the 10-year yield rose more than 5 basis points to top 2.21%. Yields were already trading at their highest since 2019.

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