Fed raises interest rates, stocks drag

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Fed raises interest rates, stocks drag

The latest move by the Federal ReserveFederal Reserve to combat inflation was noted by investors as the U.S. stocks fell for the third time in a row.

The Fed raised its policy rate by 75 basis points and also signalled more rate hikes in the coming period.

The shares of the megacap tech and growth companies including Tesla Inc TSLA, Amazon.com Inc AMZN and Nvidia Corp NVDA all fell on Thursday.

The Nasdaq 100 fell by 1.17% to close at 11,501. On Thursday, the S&P 500 fell 0.84%, while the 65 was at 65. The Dow Jones dipped around 107 points to settle at 30,076. Consumer discretionary and financial stocks recorded the biggest decline on Thursday, with the majority of the S&P 500 closed on a lower note. Health care stocks bucked the market trend, gaining around 0.5% in the previous session.

The CBOE Volatility Index, also known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.