Dow Jones declines over 1% after Fed hikes interest rates; banking stocks down

US stocks ended in the negative territory on Wednesday after the Federal Reserve decided to raise key interest rates for the first time in more than three years.

The Dow Jones Industrial Average slid 1.21% to settle at 51,461.90, while the S&P 500 declined 0.45% to 7,551.81. The tech-heavy NASDAQ Composite index fell 0.01% to 25,978.42.

Shares of Bank of America Corporate descended 2.72% to $57.90 apiece, while Wells Fargo slipped 2.98% to $87.06 a unit. The Goldman Sachs Group, American Express and Visa were also down 3.96%, 3.69% and 1.24%, respectively.

Citigroup and JPMorgan Chase & Co fell 2.39% and 1.01%, respectively.

"Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little," the US Fed said in a statement.

"Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2% goal. The Committee will deliver price stability," it added.

In a press conference, Feb Chairman Kevin Warsh noted that inflation is "too high" and has been for too long. " This summer’s inflation readings do not tell me that underlying trends have meaningfully improved," he added.

Crude oil prices declined 0.06% to $105.77 a barrel, and West Texas Intermediate (WTI) declined 0.22% to $102.20.