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Markets Right Now: Stocks fall after Fed signals more hikes

December 14, 2016

NEW YORK (AP) — The latest on developments in financial markets (All times local):

4:00 p.m.

Stocks fell after the Federal Reserve raised a key interest rate and surprised investors by increasing its forecast for the number of rate hikes it expected to make next year.

The dollar rose against other currencies Wednesday, and bond yields rose sharply. The yield on the 10-year Treasury note reached its highest level in more than two years.

High-dividend stocks fell more than the rest of the market.

Banks, which would benefit from higher interest rates, held up better than other sectors. SunTrust Banks rose 1.3 percent.

The Dow Jones industrial average fell 118 points, or 0.6 percent, to 19,792. The Standard & Poor’s 500 index lost 18 points, or 0.8 percent, to 2,253. The Nasdaq composite gave up 27 points, or 0.5 percent, to 5,436.

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2:15 p.m.

Stocks were mostly lower in afternoon trading after the Federal Reserve raised its benchmark short-term interest rate, but banks bucked the downward trend and moved higher.

Banks and other financial companies stand to benefit from higher interest rates because it will allow them to charge more to lend money.

The financial sector was the only one to rise in afternoon trading Wednesday. The other 10 industry groups fell, led by real estate companies and utilities.

Gains for Goldman Sachs, American Express and JPMorgan Chase limited the decline in the Dow Jones industrial average.

The Dow was down 23 points, or 0.1 percent, at 19,887. The Standard & Poor’s 500 index lost 7 points, or 0.3 percent, to 2,264. The Nasdaq composite fell 25 points, or 0.4 percent, to 5,441.

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11:45 a.m.

Stocks are moving slightly lower in midday trading on Wall Street, a day after indexes set their latest all-time highs.

Real estate companies fell the most Wednesday, and energy stocks declined along with the price of crude oil. Murphy Oil gave back 2 percent.

Banks were also lower. Wells Fargo lost 2 percent.

Investors are looking ahead to the conclusion of a Federal Reserve policy meeting. The Fed is widely expected to raise interest rates for the second time in a year.

The Dow Jones industrial average fell 28 points, or 0.1 percent, to 19,882. The Standard & Poor’s 500 index lost 4 points, or 0.2 percent, to 2,266. The Nasdaq composite edged down 5 points, or 0.1 percent, to 5,459.

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9:35 a.m.

Stocks are little changed on Wall Street in early trading, a day after indexes set their latest all-time highs.

Energy companies fell along with the price of crude oil Wednesday. Murphy Oil gave back 2 percent.

Banks were also lower, but safe-play stocks like utilities rose.

Investors are looking ahead to the conclusion of a Federal Reserve policy meeting. The Fed is widely expected to raise interest rates for the second time in a year.

The Dow Jones industrial average was little changed at 19,911. The Standard & Poor’s 500 index was up a fraction at 2,272. The Nasdaq composite edged up 8 points, or 0.2 percent, to 5,472.

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