Wall Street ends in red, Dow Jones sheds more than 600 points

US stocks closed lower on Wednesday after the Federal Reserve raised interest rates for the first time in three years, while remarks by Fed Chair Kevin Warsh fueled concerns that interest rates and treasury yields could remain elevated for longer.

The Dow Jones Industrial Average fell 1.21%, or 631 points, to 51,461.

The broader S&P 500 edged down 0.45%, or 33 points, to 7,551, while the Nasdaq Composite remained flat at 25,978.

In Europe, the STOXX Europe 600 gained 0.46% to 637.

The UK’s FTSE 100 inched up 0.28% to 10,688 points, while Germany’s DAX added 0.53% to 25,537 and France’s CAC 40 rose 0.62% to 8,140.

In Japan, the Nikkei 225 rose 0.70% to 63,923, while the broader TOPIX gained 0.60% to 4,061.

Oil prices retreated, with Brent crude futures for November delivery dropping 2.69%, or $2.92, to $105.83 a barrel.

US NYMEX crude futures for October delivery shed 3.21%, or $3.40, to $102.43 a barrel.

Gold futures for December delivery increased 1.26%, or $54.7, to $4,387.5 an ounce.

Market drivers

Warsh’s remarks offset the strong boost Wall Street received from lower oil prices, pushing treasury yields back above 5%, particularly after policymakers signaled that they expect to raise interest rates at least once more this year.