(CNBC) U.S. stocks fell in choppy trade Wednesday, led lower by energy and utilities, after the Federal Reserve raise rates for the second time in a decade.
The Dow Jones industrial average closed about 120 points lower after dropping more than 150 points following the Fed's announcement, with Caterpillar, 3M and Boeing contributing the most losses. The blue-chips index also hit a new intraday high earlier in the session. The S&P 500 dropped about 0.8, with utilities and energy falling around 2 percent. The Nasdaq composite slipped 0.5 percent.
The Federal Open Market Committee raised its target range from 0.25 percent to 0.5 percent to a range of 0.5 percent to 0.75 percent. The overnight funds rate currently sits at 0.41 percent. In addition to approving the much-expected increase, the FOMC also indicated a higher rate than projected back in September when it last released the quarterly look ahead. The committee now expects three rate hikes in 2017, two or three in 2018 and three in 2019.
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