the stock market opened higher on wednesday but pared back gains after the federal reserve raised interest rates by 75 basis points—the largest increase in 28 years as investors continue to worry about surging inflation and rising recession risks stocks were slightly higher on wednesday after five losing sessions in a row the dow jones industrial average rose 02 nearly 100 points while the sp 500 gained 05 and the techheavy nasdaq composite 12 the market gave up most of its gains in the afternoon however after the federal reserve announced it would raise interest rates by 75 basis points the biggest increase since 1994 investors had been betting on a 75basispoint increase rather than the previously expected 50basispoint hike after a muchhotterthanexpected inflation report last week showed consumer prices jumping 86 in may compared to a year ago the last time the federal reserve raised interest rates by 75 basis points was under the leadership of alan greenspan in november 1994 when the central bank orchestrated a soft landing and avoided a recession despite hiking rates seven times in 13 months investors will be watching closely for any new hints on the path for monetary policy going forward when fed chair jerome powell gives a press conference at 200 pm edt rates on government bonds moderated somewhat on wednesday after surging higher earlier in the week with the 2year and 10year treasury yields recently hitting their highest levels since 2007 and 2011 respectively “don’t be fooled by this wed morning rally—the overall attitude is still very gloomy and most people look at a recession and further equity downside as being inevitable” says vital knowledge founder adam crisafulli “the one area of anxiety concerns bear market rallies and there is a worry that one may happen at some point this week around the fed most people think any such rally will be ephemeral but violent” what to watch for “while markets now expect a 75basispoint rate hike by the fed the press conference following the release of the statement this afternoon will help analysts assess the fed’s ability to navigate chairman powell’s socalled softish landing as it takes a more aggressive approach in stanching inflation” says quincy krosby chief equity strategist for lpl financial the price of bitcoin meanwhile fell to around 21000 as the cryptocurrency market continues to be hardhit by a massive selloff this week as several firms halted exchanges or announced layoffs in what experts are calling a “crypto winter” the benchmark sp 500 fell deeper into bear market territory on tuesday now sitting roughly 22 below its record highs in january all three major averages are coming off the back of their worst down week since january falling by roughly 5 or more after last week’s redhot inflation report led to a spike in recession fears here’s how markets reacted last time the fed hiked rates by 75 basis points forbes stock market ‘carnage’ set to worsen as fed rate decision looms—here’s how bad it could get forbes here’s what the crypto ‘bloodbath’ means for the stock market it’s not good forbes