S&P 500 snaps 2-day winning streak after Fed raises rates and signals more hikes next year; European stocks pare losses as markets digest inflation data 
Stocks slid Wednesday as investors absorbed the Federal Reserve’s latest interest rate hike decision in its efforts to crush inflation. 
The Dow Jones Industrial Average fell 142.29 points, or 0.42%, to 33,966.35. The S&P 500 declined 0.61% to 3,995.32. The Nasdaq Composite dropped 0.76% to 11,170.89. 
The Fed delivered a widely anticipated 50 basis point rate hike at the conclusion of its December policy meeting. It’s a smaller bump from the prior four consecutive rate hikes of 75 basis points. A basis point is equal to one-hundredth of one percent. 
Fed officials also forecast raising rates through next year, not lowering rates until 2024. The central bank ultimately sees itself taking rates to 5.1% before it stops hiking, a so-called terminal rate that is higher than the 4.6% level it forecast in September. 
Shares of the electric vehicle maker, Tesla, shed more than 1% following analyst calls for how the stock will perform in 2023. Goldman Sachs cut its price target while reiterating the stock as a buy. Morgan Stanley said it was a top auto pick for 2023. 

The pan-European Stoxx 600 closed flat provisionally, reversing an earlier decline of 0.5%. Basic resources shed 1.7% to lead losses but sectors were a mixed bag, with utilities, real and F&B stocks gaining around 0.7%. 
TUI shares fell more than 7% in early trade to the bottom of the Stoxx 600 after the German-based travel operator announced its full-year earnings and a planned capital raise in order to repay Covid-19 support next year. At the top of the index, Austrian energy firm OMV climbed 3% after announcing a special dividend. 
Source: CNBC, Investing.com