Wall Street rally gets capped off by rate hikes

• Fed rate hike cuts down US equities.
• As rate hikes are expected to continue rising, the US yield curve risks continuing to invert.

Wall Street ended Wednesday off of the day's highs, with US equities retreating after the US Federal Reserve hiked interest rates to 2.25%, in line with broader market expectations.

The US Fed is still on pace to hike rates again in December as long as the US economy keeps its current growth prospects on the rails, and the Fed is looking much more hawkish.

The US Treasury curve flattened on reaction to the rate hike, and the Dow Jones Industrial Average declined 0.4%, with the S&P 500 falling back 0.33% with the Nasdaq Composite in the red by 0.21%.

S&P 500 levels to watch

The Standard & Poor's 500 index is falling back from a recent peak at 2,940, testing the 2,900 technical barrier with support coming from the last swing low at 2,864.