Global Stocks Tumble Amid Fed's Rate Hike Announcement

Global stock markets saw declines following the U.S. Federal Reserve's decision to raise interest rates, with more hikes expected. The move, aimed at combating inflation, led to increased U.S. bond yields and losses in major indexes. Oil prices dipped due to eased Middle East concerns.

Global stocks plunged after the U.S. Federal Reserve announced its decision to raise interest rates by 25 basis points, marking the first hike since 2023. Under the leadership of new Fed Chair Kevin Warsh, the unanimous decision also hinted at future increases aimed at curbing inflation.

Wall Street saw all three major indexes lose early gains, driven down by energy and financial sectors. Concerns about rising inflation and bond yields contributed to declines in equity markets, with MSCI's global equities index falling for a third consecutive session.

In contrast, European shares ended higher before the Fed's announcement. Meanwhile, oil prices decreased as Saudi Arabia's additional crude offerings alleviated supply disruption concerns. The dollar gained strength against major currencies following the Fed's hike.