New York, June 17, 2026, 20:01 EDT
- S&P 500 slid 1.2%, Nasdaq slipped 1.3% and the Dow tumbled 507 points as rate-hike hopes picked up on new Fed projections.
- SPY was down in after-hours, last trading at $740.96. QQQ slipped to $722.51 and DIA was lower at $516.30.
- Friday is a holiday for NYSE and Nasdaq, cutting the trading week short ahead of Juneteenth.
NEW YORK — U.S. stocks slipped further in after-hours trade Wednesday, following a steep drop on Wall Street. The Federal Reserve kept rates unchanged but indicated the next move might be up, not down.
S&P 500 finished off 91.25 points, or 1.2%, to close at 7,420.10. The Dow lost 507.12 points, or 1%, ending at 51,492.55. Nasdaq Composite slipped 354.69 points, or 1.3%, wrapping up at 26,021.66, AP said. AP News
Investors had bet on growth and tech stocks for much of the year, counting on the Fed to keep policy steady. The central bank kept its target range at 3.50% to 3.75%. But it stuck with its message on inflation, saying price growth is still above its 2% target and adding, in a line markets picked up on, that it “will deliver price stability.” Federal Reserve
The Fed’s updated projections took a bigger toll. The central bank now sees its median federal funds rate at 3.8% for 2026, up from 3.4% in March. The median outlook for PCE inflation moved higher too, rising to 3.6% from 2.7%. Federal Reserve
Exchange-traded funds didn’t move much after the 4 p.m. close. The SPDR S&P 500 ETF Trust ended at $740.96, Invesco QQQ Trust at $722.51 and the SPDR Dow Jones Industrial Average ETF Trust at $516.30. All three stayed under their prior closing levels.
Rates were the story across markets. The two-year Treasury yield jumped 16 basis points to 4.207%. A basis point equals one-hundredth of a percentage point. Tom Graff at Facet called it “clearly…a big shift.” Karl Schamotta at Corpay said the Fed had “turned sharply hawkish.” Reuters
Stocks sold off across the board. Reuters said every S&P 500 sector finished down after the Fed meeting. Communications services dropped around 3%. Michael James, managing director at Rosenblatt Securities, described the move as “a hawkish tilt.” Regional banks trailed big banks as traders priced in more funding and credit risk. Reuters
Big tech stocks stayed under pressure as investors continued to price in higher discount rates. Nvidia was last off 1.3%. Microsoft dropped 3.8%, while Amazon fell 3.5%. All three heavyweights ended up lagging as the Fed shift weighed on the sector.
Economic numbers limit how easy the Fed can sound. The Census Bureau reported May retail and food-services sales climbed 0.9% from April to $763.7 billion, up 6.9% from last year. The figures are not adjusted for price changes. Consumers are still spending despite inflation. Census.gov
Investors may have swung too far on just one meeting. Yields could fall if gas prices cool off quickly or inflation comes in softer, which might help growth stocks find their footing. But more strain could show up if there’s another energy price jump, a hot spending number, or inflation that stays higher. Equities would stay under pressure then, with regional banks, homebuilders and high-multiple tech stocks likely taking the brunt.
Trading is expected to slow down fast. NYSE and Nasdaq mark Juneteenth, Friday, June 19, as a market holiday in 2026, so Thursday is the last normal session before the holiday. New York Stock Exchange
