US stocks: Nasdaq, S&P fall over 1% as Fed holds rates; traders raise hike bets (opens original article in a new tab)

US stocks declined as traders raised expectations of future rate hikes following the Fed's statement and comments from new Chair Kevin Warsh.

• US stocks S&P 500 and Nasdaq fell over 1% on Wednesday
• Fed's policy statement removed language about rate cuts this year, with nine officials projecting a rate hike by 2026
• Traders increased bets on rate hikes, with 38% probability for a 25-basis-point hike by December