U.S. markets ended lower on Wednesday after the U.S. Federal Reserve raised its benchmark policy interest rate by 25 basis points to 3.75%-4% for the first time in three years, while central bank Chairman Kevin Warsh highlighted persistent inflation. Traders remained cautious as a report released by the National Association of Home Builders (NAHB) showed the NAHB/Wells Fargo Housing Market Index (HMI), which tracks US homebuilder confidence in the market for newly built single-family homes, fell to 32 in September 2026, the lowest in a year, compared to 35 in August and forecasts of 34. However, losses remain capped as traders took some support with a report released by the Commerce Department showed retail sales in the US increased 1.2% month-over-month in August 2026, the most in five months, following a revised 0.5% fall in July which was the first decline since October 2025, and compared to forecasts of a 0.8% gain. Besides, the Commerce Department said Business inventories in the US went up by 0.8% month-over-month in July 2026, after an upwardly revised 0.1% increase in the prior month and above the expected 0.3% advance.
Dow Jones Industrial Average decreased by 631.21 points or 1.21 percent to 51,461.9, S&P 500 was down by 33.92 points or 0.45 percent to 7,551.81 and Nasdaq fell by 3.14 points or 0.01 percent to 25,978.42.
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