Last updated: March 22, 2023 at 5:08 p.m. ET
First published: March 22, 2023 at 3:45 p.m. ET
Shares of Invesco QQQ Trust, which tracks the technology-heavy Nasdaq-100 index, ended lower on Wednesday after the Federal Reserve announced an interest rate hike in line with expectations.
The Invesco QQQ Trust QQQ ended down 1.4%, after flipping between gains and losses earlier in the session, while the SPDR S&P 500 ETF Trust SPY fell 1.7%, according to FactSet data. The Invesco QQQ Trust has jumped 15% this year through Wednesday, far outpacing the 2.5% gain of the S&P 500 ETF Trust.
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Shares of Invesco QQQ Trust, which tracks the technology-heavy Nasdaq-100 index, ended lower on Wednesday after the Federal Reserve announced an interest rate hike in line with expectations.
The Invesco QQQ Trust
QQQ
ended down 1.4%, after flipping between gains and losses earlier in the session, while the SPDR S&P 500 ETF Trust
TO SPY
fell 1.7%, according to FactSet data. The Invesco QQQ Trust has jumped 15% this year through Wednesday, far outpacing the 2.5% gain of the S&P 500 ETF Trust.
The Federal Reserve said on Wednesday it had raised its benchmark interest rate by a quarter of a percentage point, as expected, to a target range of 4.75% to 5%, as it continues to battle high inflation after taking recent steps to bolster confidence in the U.S. banking sector. The Fed’s dot-plot forecast showed just one more rate hike this year, with no expected rate cuts.
Read: Fed raises interest rates again, expects just one more hike
“The U.S. banking system is strong and resilient,” the Fed said in its statement made public on Wednesday afternoon. “The Committee remains very attentive to the risks of inflation.”
Meanwhile, Treasury yields have fallen.
The return on the 10-year treasury bill
TMUBMUSD10Y
slipped 10.6 basis points on Wednesday to 3.497%, while two-year Treasury yields
TMUBMUSD02Y
fell 19.8 basis points to 3.977%, according to Dow Jones Market Data.
