U.S. stocks lose ground after Fed hikes rates

U.S. stocks didn't manage to hold on to their gains and closed lower on Wall Street, even after the Federal Reserve said the economy was on strong enough footing to take another interest rate increase.

Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, Wednesday, Sept. 26, 2018. The Federal Reserve has raised a key interest rate for the third time this year in response to a strong U.S. economy and signaled that it expects to maintain a pace of gradual rate hikes. [Photo: AP/Susan Walsh]

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.

Bond prices rose. The yield on the 10-year Treasury fell to 3.05 percent from 3.10 percent a day earlier.