US stocks sink after Fed rate hike, Dow swings over 700 points to close down 1.5%

VIDEO: REUTERS
Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange.
Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange.PHOTO: AFP

NEW YORK (AFP) - Wall Street stocks tumbled on Wednesday (Dec 19) after the Federal Reserve lifted interest rates while pledging a cautious approach to additional interest rate hikes next year.

At the closing bell, the Dow Jones Industrial Average was down 1.5 per cent, about 350 points, at 23,324.10.

The broad-based S&P dropped 1.5 per cent to 2,506.87, while the tech-rich Nasdaq Composite Index sank 2.2 per cent to 6,635.48.

Major indices had been up about 1 per cent prior to the Fed announcement.