Stock Market Today, Sept. 16: Stocks Slip as Fed Raises Rates

The Federal Reserve raised its benchmark rate 25 basis points to a range of 3.50%-3.75%, the first increase in three years, pressuring major indices in Tuesday's session. The S&P 500 fell 0.45%, the Dow Jones dropped 1.21%, and the Nasdaq slipped 0.01%.

DELL, INTC, and NVDA bucked the selloff, each finishing in positive territory as AI-focused names found buying interest despite the hawkish Fed move. The divergence highlights sector rotation as traders digest the rate environment's impact on growth versus value.

Markets are pricing in additional hikes ahead, which historically compress equity multiples in the near term. However, Fed tightening cycles have preceded gains within 12-month windows, creating potential setup for patient buyers.

The muted Nasdaq decline relative to the Dow suggests tech may be stabilizing after its rate-sensitive selloff earlier in the cycle. The three semiconductor and AI infrastructure names held green while broader markets struggled, signaling selective appetite for secular growth themes even as the Fed tightens.