Dividend-paying utilities were also the worst performing sector after the Fed’s announcement. The Utilities Select Sector SPDR (NYSEArca: XLU) retreated 1.9%, Vanguard Utilities ETF (NYSEArca: VPU) declined 1.6% and iShares U.S. Utilities ETF (NYSEArca: IDU) fell 1.7%.
The emerging markets, which have been under pressure from a U.S. rising rate outlook, also dropped into the red after the Fed. The Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) both decreased 1.6%.
On the other hand, the U.S. dollar benefited from the Fed outlook. The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) rose 0.8% and the actively managed WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEArca: USDU) gained 0.6%.
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Full disclosure: Tom Lydon’s clients own shares of XLU.
Max Chen contributed to this article.