Stocks Volatile as Fed Hikes Rates; Dow Off 38
Stocks struggled to a mixed finish after the Federal Reserve's widely expected interest-rate increase did little to calm turbulent U.S. financial markets.</br></br>The Dow Jones industrial average fell 37.85 to close at 11,003.20. The blue-chip index rose as much as 60 points in the moments before the Fed released its decision, then bobbed between positive and negative territory for much of the rest of the session.</br></br>The Standard & Poor's 500 slipped 0.16, to 1409.12, and the Nasdaq composite index rose 21.98, to 4073.96.</br></br>Stocks gave up early gains after the Fed said it was raising its target for the federal funds rate--the interest banks charge one another on overnight loans--to 5.75 percent from 5.50 percent. Several commercial banks quickly announced that they, too, would boost borrowing costs.</br></br>Higher rates can cut into corporate profits by making it more difficult for companies to borrow money to finance growth.