Fed Hikes Rates for First Time in Three Years; Dot Plot Signals More Tightening

The simultaneous drop in stocks and bonds is the tell: this reads as a repricing of the discount rate rather than a growth scare, which is why AI names held up better than the broad tape. The hotter retail sales print gives the tightening camp cover, so the debate shifts from whether the Fed moves again to how far the dot plot can run ahead of the data. Whether AI leadership keeps absorbing rate pressure, or the dollar's rally starts biting elsewhere, is the open question.