The Federal Reserve’s first rate increase in more than three years jolted global markets during the September 16 session, pushing gold down more than $30 an ounce and sending the Dow Jones Industrial Average 1.2% lower. The Federal Open Market Committee (FOMC), the Fed’s monetary policy body, lifted the federal funds rate by 0.25 percentage point to a target range of 3.75%–4%, marking the first tightening move since July 2023. Fed Chair Kevin Warsh said price trends had shown virtually no improvement while the economy had strengthened considerably, reaffirming the Fed’s commitment to price stability and indicating that additional increases were likely as policymakers pursue a 2% inflation target. Spot gold settled at $4,263 an ounce, while December 2026 U.S. gold futures fell 0.65% to $4,304.50. The dollar index rose to about 100.25, weighing on gold because the metal produces no yield and becomes more expensive for overseas buyers. U.S. stocks reversed earlier gains after the announcement, with the Dow falling 631.33 points, the S&P 500 declining 0.4% and the Nasdaq Composite edging down 3.15 points. Technology was the strongest-performing sector, helped by a 4% rise in Intel, while energy dropped 3% as oil prices eased. Treasury yields climbed, with the 10-year yield near 5.01% and the two-year yield at 4.73%. WTI crude fell 3.2% to $102.43 a barrel and Brent declined 2.7% to $105.83, though both remained above $100 after reports that Saudi Arabia was prepared to supply additional cargoes through Oman. Economists said markets were likely to remain volatile and defensively positioned as investors reassessed the prospect of further rate increases, with high-valuation stocks, rate-sensitive equities, gold and other risk assets facing pressure.