(CNN Business) 1. Fed aftermath: A decision by the US Federal Reserve to increase interest rates for the third time this year has produced a cautious reaction from investors.

The rate hike on Wednesday was a sign of increased confidence in the US economy. Unemployment is low, economic growth is strong, and inflation is relatively stable.

Fed policymakers led by Chairman Jerome Powell unanimously agreed to raise the federal funds rate a quarter percentage point, to a range of 2% to 2.25%.

Investors reacted by pushing the Dow Jones industrial average down 0.4%. The S&P 500 dropped 0.3% and the Nasdaq slipped 0.2%.

Bank stocks were particularly hard hit. Shares in Wells Fargo (WFC), Bank of America (BAC) and Goldman Sachs (GS) shed nearly 2%.

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