Markets tumble after Fed hikes interest rate again

Sept. 21 (UPI) -- The major American stock indices fell deep in the red by the end of trading Wednesday, including major declines in the final trading hour as markets reacted to the U.S. Federal Reserve Bank's latest interest rate hike.

Virtually all sectors were affected by the third-consecutive 0.75% rate increase issued by the Federal Open Market Committee, which said further increases are expected.

The Nasdaq Composite fell 204.86 points or 1.79%, to 11,220.19. The Dow Jones Industrial average fell by 522.45 points, or 1.7%, closing at 30,183.78. The S&P 500 dropped 66 points, or 1.7%, to 3,789.93.

Booking Holdings, which owns and operate several travel fare aggregators like Booking.com and Kayak lost $89.93, or 4.7 percent, as one of the biggest losers. Regeneron Pharmaceuticals and Lululemon Athletica were among the other big losers.

Major names across several sectors were all down on the day. McDonald's was down 1.7%; Apple, 2%, Boeing, 1.87%, and American Express, 3.10%.

The index's consumer goods producers made gains but those were offset by major declines in the travel sector. American Airlines, Expedia, Marriott and Royal Caribbean Cruises were all among the biggest decliners on the day.

The U.S. dollar index climbed to a 20-year high, rising more than 1.1% at one point on Wednesday and standing at 111.37 at 5 p.m. EDT, an increase of 1.05%.

Following the interest rate announcement, the federal funds rate now stands at between 3% and 3.25% after it remained near zero as recently as March. The Federal Reserve said it expects it to hit 4% by the end of the year, topping out at 4.5% to 4.75% at some point in 2023.