The Dow Jones Industrial Average fell 265.66 points, or 0.77 percent, to 34,033.67. The S&P 500 decreased 22.89 points, or 0.54 percent, to 4,223.70. The Nasdaq Composite Index was down 33.17 points, or 0.24 percent, to 14,039.68.
Ten of the 11 primary S&P 500 sectors finished in red, with utilities down 1.49 percent, leading the laggards. Consumer discretionary rose 0.16 percent, the lone gaining group.
U.S.-listed Chinese companies traded mostly lower with seven of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.
The U.S. central bank on Wednesday kept its benchmark interest rates unchanged at the record-low level of near zero, as the economic recovery continues amid growing concerns over inflation surge.
"Progress on vaccinations has reduced the spread of COVID-19 in the United States. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened," the Fed said in a statement after concluding its two-day policy meeting.
With inflation having run persistently below the 2-percent longer-run goal, the Federal Open Market Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent, the Fed reiterated, acknowledging that inflation has risen, "largely reflecting transitory factors."
"The statement suggests nothing really changed except the Fed's economic forecast. They are confident in their projections, comfortable with their plans and sticking to their guns," Chris Low and Will Compernolle, economists at FHN Financial, said in a note on Wednesday.
Latest comments