Dow falls 260 points after Fed signals 2 rate hikes in 2023; European stocks close slightly higher as markets await Fed outcome 
U.S. stocks dropped Wednesday after the Federal Reserve raised its inflation expectations and moved up the time frame on when it will next hike interest rates. 
The Dow Jones Industrial Average closed down 265.66 points, or 0.8%, at 34,033.67. The blue-chip average turned sharply lower after the Fed’s statement, falling as much as 382 points. The S&P 500 dipped 0.5% to 4,223.70, dragged down by utilities and consumer staples. The broad equity benchmark dropped as much as 1% in volatile trading as all 11 sectors fell into the red at one point. The Nasdaq Composite dipped 0.2% to 14,039.68 after retreating 1.2% at its session low. 
The policymaking Federal Open Market Committee indicated that rate hikes could come as soon as 2023, after signaling in March that it saw no increases until beyond that year. 
The Fed also raised its headline inflation expectation to 3.4% for 2021, a full percentage point higher than the March projection, but the post-meeting statement continued to say that inflation pressures are “transitory.” 

The pan-European Stoxx 600 provisionally ended up 0.3%, with most sectors and major bourses in positive territory. Travel and leisure stocks led the gains, adding 1.3%, while the banking index fell 0.8%. 
In terms of individual stock movement, shares of Dutch retailer Colruyt Group fell more than 11.2% after the company missed fiscal full-year earnings expectations and issuing a profit warning. 
Source: CNBC