Markets slip as Fed holds but summer rate hikes could trigger correction

Markets were mostly lower on Wednesday.

The S&P 500 slipped 0.1 percent, the STOXX Europe 600 fell less than 0.1 percent and the Shanghai Composite fell 0.3 percent.

After a monetary policy meeting, the Federal Reserve released a statement on Wednesday saying that the slowing in growth during the first quarter is “likely to be transitory” and that job gains were “solid”.

“That officially puts two more interest-rate increases on the table,” said Matthew Peterson, chief wealth strategist at LPL Financial.

The yield on the US 10-year Treasury note rose four basis points to 2.32 percent on Wednesday.

On Tuesday, Jeffrey Gundlach, chief executive officer of DoubleLine, had said he expects the 10-year Treasury yield to move higher, and a summer interest rate rise should “go along with a correction in the stock market”.