The S&P 500 fell 0.43% and the Dow Jones Industrial Average dropped 1.17% on Tuesday following a Federal Reserve decision to lift borrowing costs. The Dow lost over 500 points after the first rate hike in more than 3 years and a signal from Chairman Kevin Warsh that further tightening is likely. Warsh stated the U.S. economy has strengthened, though inflation remains elevated with little improvement.

Treasury yields climbed following the announcement, pushing the 2 year yield above 4.71% to a 2 year high and the 10 year yield over 5.00%. The U.S. Dollar Index jumped to 100 for the first time in more than 4 weeks. This move reverses the central bank's policy from 12 months ago when the Fed was cutting interest rates.