U.S. stocks closed lower Wednesday after the Federal Reserve raised its benchmark interest rate for the first time in more than three years. The unanimous quarter-point increase brought the federal funds target range to 3.75% to 4% as officials continue working to bring inflation toward the central bank’s 2% target.

Fed Chair Kevin Warsh said the economy has strengthened since the previous meeting, but inflation has shown little improvement. The decision also signaled that additional rate increases could be needed in the coming months if inflation remains elevated.

Higher energy prices have added to inflation concerns as the war involving the United States, Israel and Iran continues to disrupt the Middle East. Oil prices have risen more than 20% over the past two and a half weeks, although crude prices declined Wednesday after reports that Saudi Arabia was offering additional supplies through Oman.

The S&P 500 fell 33.92 points, or 0.45%, to 7,551.81. The Dow Jones Industrial Average dropped 631.21 points, or 1.21%, to 51,461.90, while the Nasdaq composite slipped 3.15 points, or 0.01%, to 25,978.42. The Russell 2000 fell 15.53 points, or 0.54%.

Energy stocks were among the weakest performers as oil prices declined. Meanwhile, semiconductor shares helped support technology stocks, with Intel gaining following reports that South Korea’s SK Hynix is discussing potential U.S. manufacturing plans with the company. Boeing fell after CEO Kelly Ortberg said stabilizing 737 MAX production was taking longer than expected.