Wall Street sinks on bets Fed will hike rates this year

Wall Street experienced a downturn on Wednesday, with the S&P 500 and Nasdaq both closing down by more than 1%. This decline occurred as traders anticipated a rate hike from the Federal Reserve. The market reaction followed comments from Chairman Kevin Warsh, who emphasized the importance of taming inflation. Additionally, other policymakers projected that further interest rate increases would be necessary throughout the year to stabilize the economy and manage inflationary pressures.