Wall Street reversed early strength Wednesday after the Federal Reserve’s first rate hike in three years and Chair Kevin Warsh’s insistence that inflation remains too high. The Dow Jones Industrial Average fell 631.21 points, or 1.2%, to 51,461.90. The S&P 500 slipped 0.4% to 7,551.81, and the Nasdaq edged down less than 0.1% to 25,978.42.

Bank stocks led declines, with the SPDR S&P Bank ETF off about 2% and major lenders including Goldman Sachs, Wells Fargo, Bank of America, and Citigroup falling roughly 3%. Traders cited narrower expected net-interest margins if short rates rise while long yields stay sticky, plus slower loan demand if growth cools.

Energy shares also weighed after Brent crude’s 2.7% retreat. Offsetting some pressure, Nvidia rose about 0.8% and AMD about 1.6%, recovering part of earlier-week losses that followed AI-industry calls for a development slowdown. Treasury yields held above 5% in wrap notes.

Market desks framed the session as a classic hawkish-Fed fade rather than a growth scare. Accounts agree on the index closes and bank underperformance; they diverge on whether AI leadership can keep carrying the tape if further hikes arrive. Officials and independent outlets continue updating confirmed details as they become available. Readers should treat casualty figures, market closes, and diplomatic claims as provisional until primary agencies publish final tallies. NewsHabit’s both-sides notes below flag where major accounts agree and where they still diverge on motive, legality, or next steps. Officials and independent outlets continue updating confirmed details as they become available. Readers should treat casualty figures, market closes, and diplomatic claims as provisional until primary agencies publish final tallies. NewsHabit’s both-sides notes below flag where major accounts agree and where they still diverge on motive, legality, or next steps.