Fed Hikes Interest Rates: Tesla Shares Dip, Chipmakers Nvidia and Broadcom Rally

The Federal Reserve kept US interest rates unchanged but signaled more hikes by the end of the year, which added a hawkish tilt to the Fed's interest rate decision.

The new projections showed policymakers at the median see the benchmark overnight interest rate rising from the current 5.00%-5.25% range to a 5.50%-5.75% range by the end of the year.

Shares of Tesla dipped, ending the company's 13-session streak of gains, while chipmakers Nvidia and Broadcom both rallied, lifting the Nasdaq and S&P 500.

Volume on US exchanges was strong, with 12.1 billion shares traded, compared to an average of 10.7 billion shares over the previous 20 sessions.

The S&P 500 climbed 0.08% to end at 4,372.59 points, while the Nasdaq gained 0.39% to 13,626.48 points.