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Markets Right Now: Stocks give up early gain and end lower

September 26, 2018

FILE- In this May 10, 2018, file photo signs for the New York Stock Exchange hang above the trading floor. The U.S. stock market opens at 9:30 a.m. EDT on Wednesday, Sept. 26. (AP Photo/Mark Lennihan, File)

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

4 p.m.

Stocks gave up an early gain and closed lower after the Federal Reserve made its third interest rate hike this year.

Banks and real estate companies fell the most Wednesday. Bank of America sank 1.7 percent and Vornado Realty Trust fell 2.1 percent.

The Fed, as expected, raised its benchmark rate by a quarter-point and indicated another increase this year is likely. The Fed raises rates when the economy is growing to keep inflation in check.

The S&P 500 slipped 9 points, or 0.3 percent, to 2,905.

The Dow Jones Industrial Average fell 106 points, or 0.4 percent, to 26,385. The Nasdaq lost 17 points, or 0.2 percent, to 7,990.

Small-company stocks fell more than the rest of the market.

The yield on the 10-year Treasury fell to 3.05 percent.

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11:45 a.m.

Stocks are moving slightly higher as investors wait for word from the Federal Reserve on interest rates.

The Fed is widely expected to raise its benchmark rate for the third time this year later Wednesday. It’s a positive sign for the economy but will also raise borrowing costs for businesses and consumers.

Most investors expect a fourth rate increase in December with perhaps a few more in 2019, as the economy continues to strengthen.

The S&P 500 index added 6 points, or 0.2 percent, to 2,922.

The Dow Jones Industrial Average rose 40 points, or 0.1 percent, to 26,532. The Nasdaq composite climbed 29 points, or 0.4 percent, to 8,036.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 3.08 percent.

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9:35 a.m.

Stocks are opening slightly higher on Wall Street, led by gains in health care companies.

Alexion Pharmaceuticals climbed 3 percent in early trading Wednesday, and IBM rose 2.3 percent.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 3.08 percent.

The Federal Reserve is expected to announce another increase in its benchmark short-term lending rate later in the day. It would be the third rate hike this year.

The S&P 500 index added 4 points, or 0.2 percent, to 2,919.

The Dow Jones Industrial Average rose 54 points, or 0.2 percent, to 26,550. The Nasdaq composite was little changed at 8,014.

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