S&P 500 slips as Fed hikes rates for first time since 2023, cybersecurity stocks buck the trend

The Federal Reserve just did something it hasn’t done in three years: raise interest rates. Chair Kevin Warsh’s Fed voted unanimously to hike the benchmark federal funds rate by 25 basis points on September 16, pushing the target range to 3.75%-4.00% and officially kicking off a new tightening cycle. The S&P 500 closed down 0.45% at 7,551.81. Not exactly a bloodbath, but the calm surface masked some brutal currents underneath, where bank stocks cratered and cybersecurity names quietly rallied. Banks take the hit, cyber plays catch a bid The Dow Jones Industrial Average initially plunged 631 points on the announcement before recovering some ground by the close. The damage was concentrated in financials. Bank of America and Wells Fargo each dropped roughly 3%. Goldman Sachs and American Express fared even worse, falling about 4% apiece. Meanwhile, cybersecurity stocks displayed notable relative strength. CrowdStrike saw unusual options activity as traders rotated into the sector, driven by escalating concerns over AI-driven cybersecurity threats. Why the Fed moved now The 12-0 vote signals that this wasn’t a close call. Every voting member of the Federal Open Market Committee agr...