(CNBC) — U.S. stocks whipsawed on Wednesday after the Federal Reserve upgraded its economic outlook and increased interest rates. The central bank also increased its rate-hike forecast for next year.
The Dow Jones industrial average briefly traded 250 points higher before holding just 60 points higher. The S&P 500 gained as much as 0.8 percent before trading 0.2 percent higher. The Nasdaq composite declined 0.1 percent after gaining as much as 0.6 percent.
“The initial reaction in stock was because the median dot plot didn’t go up for 2018,” said James Athey, senior investment manager at Aberdeen Standard Investments. “Then there was the more concerned reaction, with investors saying: ‘Hold on, there’s one more rate hike in for 2019.’”