Dow sinks more than 500 points in whiplash trading session after Fed raises interest rates by 75 basis points

• US stocks were all over the place on Wednesday after the Federal Reserve hiked rates by 75 basis points.
• The Dow, S&P 500, and Nasdaq 100 all closed sharply lower as the Fed signaled that more rate hikes were on the way.
• "There is a strong clustering within the dot-plots, showing all FOMC members are on board with this more hawkish narrative," ING Economics said.

US stocks closed sharply lower in a whiplashed trading session on Wednesday after Federal Reserve Chairman Jerome Powell hiked interest rates by 75 basis points and signaled that more increases were imminent.

The new fed funds target rate is between 3.0% and 3.25%, and the Fed expects it to be just under 4.5% at year-end, according to the central bank's so-called dot plot of forecasts. That suggests the Fed could hike interest rates by another 75 basis points at November's FOMC meeting, followed by a 50-basis-point bump in December.

Additionally, comments from Powell's press conference suggested a couple 25-basis-point rate hikes were possible in early 2023, bringing the fed funds target rate closer to 5%.

"With inflation proving to be far stickier than imagined, the Fed repeated that activity needs to slow much more with the door left wide open for a fourth consecutive 75bp hike in November...it is important to note that there is a strong clustering within the dot-plots, showing all FOMC members are on board with this more hawkish narrative," ING Economics said.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

• S&P 500: 3,789.91, down 1.71%
• Dow Jones Industrial Average: 30,183.78, down 1.70% (522.45 points)
• Nasdaq Composite: 11,220.19, down 1.79%

Here's what else is happening this morning:

• JPMorgan's Marko Kolanovic said in a note to clients on Wednesday that the Fed could ultimately reverse course and cut interest rates next year if a deep economic recession materializes.
• Germany is nationalizing Uniper, its leading importer of Russian natural gas, in a deal that underscores Europe's energy crisis. Uniper announced Wednesday the German government will acquire a 99% stake in the utility.
• President Vladimir Putin hinted Russia is ready to use nuclear force to hold onto its territory in Ukraine. In a televised address, Putin also said Moscow is calling up more troops to join the forces in Ukraine.
• Oil rose, the euro tumbled, and the safe-haven dollar rose Wednesday after Putin accused Western allies of "nuclear blackmail" and hinted Russia is ready to use its own nuclear weapons if needed.
• JPMorgan CEO Jamie Dimon touted the US economy's strength but warned its challenges could end in disaster, during a hearing in front of the House Financial Services Committee on Wednesday.
• Digital World Acquisition extended its six-day sell-off to as much as 30% after Truth Social threatened a lawsuit against the SEC over its delayed merger.
• The US average for a gallon of gas rose to $3.681 on Wednesday from $3.674 on Tuesday, marking the first increase in 99 days, AAA data shows.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil fell 0.26% to $83.72 per barrel. Brent crude, oil's international benchmark, rose 0.09% to $90.70.
• Gold rallied 1.16% to $1,690.50 per ounce.
• The yield on the 10-year Treasury fell 4 basis points to 52%. The 10-year yield hit an intra-day high of 3.619%.
• Bitcoin rose 0.48% to $19,120, while ether climbed 0.36% to 1,341.