Stocks Give Up Early Gain, End Lower

Stocks gave up an early gain and closed lower after the Federal Reserve made its third interest rate hike this year, the AP reports. Banks and real estate companies fell the most Wednesday. Bank of America sank 1.7% and Vornado Realty Trust fell 2.1%. 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%, to 2,905. The Dow Jones Industrial Average fell 106 points, or 0.4%, to 26,385. The Nasdaq lost 17 points, or 0.2%, 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%. (More stock market stories.)