Stocks fall after new Fed Chair Warsh’s first policy meeting as traders worry about a rate hike

Stocks fell after the Federal Reserve's first policy meeting under new Chair Kevin Warsh, as a hawkish dot plot signaled a potential rate hike this year. The S&P 500, Nasdaq 100, and all Magnificent 7 stocks declined, with every sector in the red.

Stocks fall after new Fed Chair Warsh’s first policy meeting as traders worry about a rate hike While the Fed left rates unchanged as expected a hawkish dot plot has traders bracing themselves for a rate hike this year. The Federal Reserve voted to keep rates unchanged at a range of 3.5% to 3.75%, as was universally expected. However, stocks dropped as the release removed any hints of an easing bias and the Fed’s dot plot came out on the hawkish side https://sherwood.news/markets/federal-reserve-fomc-june-2026-rate-decision-kevin-warsh/ . The S&P 500, Nasdaq 100, Russell 2000, and every Magnificent 7 stock traded lower. Every S&P 500 sector fell, with communications leading losses. Stocks that moved higher: Allbirds https://robinhood.com/us/en/stocks/BIRD/?source=sherwood surged as its AI pivot continued to pay off, with the company announcing a corporate name change and new CEO hire https://www.cnbc.com/2026/06/17/allbirds-bird-ai-smartbird-ceo.html . Figma https://robinhood.com/us/en/stocks/FIG/?source=sherwood climbed after Citi initiated coverage with a Buy rating and a $36 price target https://sherwood.news/markets/figma-rises-on-citis-buy-rating-and-36-price-target/ . Stocks that moved lower: CarMax https://robinhood.com/us/en/stocks/KMX/?source=sherwood fell despite beating on earnings and revenue, but reported reported margin pressure and falling per-unit gross profit https://www.cnbc.com/2026/06/17/carmax-kmx-q1-earnings.html . Carvana https://robinhood.com/us/en/stocks/CVNA/?source=sherwood also fell on the news. Snap https://robinhood.com/us/en/stocks/SNAP/?source=sherwood fell after unveiling “Specs," a $2,195 pair of augmented reality glasses https://www.cnbc.com/2026/06/16/snap-unveils-2195-specs-ar-glasses-spiegel-bets-on-post-smartphone.html , raising questions about consumer demand at that price point.