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US Equity Markets End Lower After Federal Reserve Increases Policy Rate

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US equity indexes ended lower Wednesday after the Federal Reserve hiked interest rates, citing persistent inflation.

* In a unanimous decision, the Fed raised the policy rate by a quarter percentage point to between 3.75% and 4%, the first hike from the central bank since July 2023. The Fed also signaled that another hike could come later this year if inflation continues to persist.

* According to the Census Bureau, Retail sales grew 1.2% in August following a 0.5% decline the month before, compared with 0.8% increase in a Bloomberg-compiled survey.

* October West Texas Intermediate crude oil fell $3.72 to settle at $102.11 per barrel, while November Brent crude, the global benchmark, was last seen down $3.28 at $105.47.

* Axon Enterprise (AXON) shares rose about 6%, among the top performers on the S&P 500 and the Nasdaq, after the company priced an offering of $1 billion of convertible senior notes due 2031.

* J.B. Hunt Transport Services (JBHT) expects earnings from Q2 to Q3 to fall 5% to 10%, Chief Financial Officer Brad Delco said Tuesday on a conference call. Shares were down roughly 13%, among the worst performers on the S&P 500.

What else is happening in Japan?

Japan

NZX Midday Sector Update: Health Technology Rises, Communications Fall

Health technology stocks gained the most on New Zealand's Exchange, rising past 1% by midday Wednesday.Fisher & Paykel Healthcare (NZE:FPH, ASX:FPH) shares climbed 2% in recent trade.Meanwhile, the communications sector shares fell almost 1%.Spark New Zealand (NZE:SPK, ASX:SPK) was down nearly 1% in recent trade.

^NZ50ASX:FPHASX:SPKNZE:FPHNZE:SPK
Japan

US Equity Markets End Lower as 10-Year Treasury Yield Climbs to Highest Since 2007, Oil Jumps

US equity indexes ended lower Tuesday after US 10-year Treasury yields rose to the highest since 2007 and oil prices climbed further.* Saudi Arabia issued security alerts over a range of areas, including Mecca and Jeddah, following a week of attacks from Iran-aligned fighters that have drawn it deeper into the Middle East war, Reuters reported.* Ahead of the Federal Reserve's monetary policy meeting on Wednesday, the likelihood of an interest rate increase by 25 basis points rose to 94.5% from 33.1% a month earlier, according to the CME FedWatch tool.* West Texas Intermediate crude oil rose $4.63 to settle at $106.02 per barrel, while global benchmark Brent was last seen up $3.08 at $108.76.* Axon Enterprise (AXON) shares fell 9.8%, the steepest decline on the Nasdaq, as the company intends to offer $1 billion of 0% convertible senior notes due 2031.* Skyworks Solutions (SWKS) shares rose 14%, the biggest gain on the S&P 500, on improving sentiment tied to Apple's (AAPL) new product line and progress on the Qorvo (QRVO) merger. Qorvo shares rose 9.3%.

Dow JonesNasdaq CompositeS&P 500$AXON$QRVO$SWKS
Japan

Update: US Equity Indexes Drop as 10-Year Yield Hits 19-Year High, Crude Oil Prices Surge

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell as the 10-year Treasury yield touched a 19-year high and crude oil extended gains, reflecting a strong likelihood of an interest-rate increase this week amid a worsening Iran war.The Nasdaq Composite fell 0.9% to 25,956.1, the S&P 500 declined 0.5% to 7,579.5, and the Dow Jones Industrial Average dropped 0.7% to 52,059.7 ahead of Tuesday's close. All sectors except energy and materials slid, with consumer discretionary leading decliners.The Federal Reserve kicked off its two-day monetary policy meeting on Tuesday. Ahead of the Fed's announcements on Wednesday, interest rate traders are now pricing in a 95% probability that the central bank will raise its target rate by 25 basis points, up from 33% a month ago, according to the CME FedWatch tool.Most US Treasury yields rose. The 10-year yield jumped 3.9 basis points to 5%, earlier touching 5.04%, the highest since 2007. The two-year yield advanced 3.1 basis points to 4.67%.Saudi Arabia issued security alerts over a range of territory on Tuesday, including in the holy city of Mecca and the second-largest city, Jeddah, following a week of attacks from Iran-aligned fighters that have drawn it deeper into the Middle East war, Reuters reported. The Iran-aligned Houthis in Yemen have carried out attacks on Saudi Arabia over the past week, including strikes on an air base on Monday, the news agency said.The front-month US West Texas Intermediate crude oil contract surged 4.2% to $105.64 per barrel, and the global benchmark North Sea Brent jumped 2.6% to $108.41 per barrel.

Dow JonesNasdaq CompositeS&P 500