U.S. stocks fell and Treasury yields hit more multiyear highs after the Federal Reserve raised rates for the first time in more than three years. Shares of technology companies steadied near the closing bell.

The Dow Jones Industrial Average dropped 631.21 points, or 1.21%, to 51461.90. The S&P 500 fell 33.92 points, or 0.45%, to 7551.81 and the tech-heavy Nasdaq Composite edged down 3.15 points, or 0.01%, to 25978.42.

The yield on the policy-sensitive two-year Treasury rose 0.065 percentage point to 4.725%, the highest close since July 2024. The yield on the 10-year Treasury note rose 0.008 percentage point to 5.003%, a 19-year high. The yield on the 30-year bond declined 0.017 percentage point to 5.346%.

The Federal Reserve hiked rates by a quarter-of-a-percentage point to a range between 3.75% and 4% on Wednesday, the first increase since 2023. At the press conference following the decision, Chairman Kevin Warsh refused to say how many more rate hikes might be required to bring inflation back to the Fed's 2% target.

Stocks and bonds were relatively stable before the press conference, but sold off while Warsh was at the podium.

"He's definitely not sending clear messages," said Allyson Heumann, professor of practice at Tulane University's Freeman School of Business.

"The bond market wants a plan," said Heumann, who was a bond trader before her academic career. "It wants to know where things are going, it wants to know what's going to happen in two years, what is our economy going to look like. He hasn't given any indication on what that's going to be, say, past 18 months. So the bond market is interpreting for itself."

Out of the 18 Fed officials who provide "dot plot" predictions on the outlook for policy, 12 forecast one more hike by the end of the year, and four officials anticipated two more.