The Dow Jones Industrial Average slid 146.51 points, or 0.46 percent, to 32,001.25. The S&P 500 lost 39.80 points, or 1.06 percent, to 3,719.89. The Nasdaq Composite Index fell 181.86 points, or 1.73 percent, to 10,342.94.
Six of the 11 primary S&P 500 sectors ended in red, with technology and communication services down 3 percent and 2.83 percent, respectively, leading the laggards. Energy rose 2.04 percent, the best-performing group.
The Fed on Wednesday raised its benchmark rates by 75 basis points for the fourth consecutive meeting, setting the federal funds target range between 3.75 percent and 4 percent.
In his press conference shortly after the rate decision, Fed Chair Jerome Powell warned that it was "very premature" to think about pausing rate hikes.
He noted that the Fed still had "a way to go" in its efforts to tame inflation, adding that data since the last policy meeting in September "suggests that the ultimate level of interest rates will be higher than expected."
On the economic front, the U.S. Labor Department said Thursday that the nation's initial jobless claims, a rough way to measure layoffs, fell by 1,000 to 217,000 in the week ending Oct. 29. Economists polled by The Wall Street Journal had forecast new claims to total 220,000.
The more-closely watched October U.S. jobs report is slated for release on Friday.
Latest comments