The Globe and Mail reports in its Thursday edition that stocks closed lower and short-term bond yields moved sharply higher Wednesday as traders bet that the Federal Reserve's next move would be a rate hike after new Fed chair Kevin Warsh highlighted the need to tame inflation and policy-makers projected rising interest rates later this year. A Reuters dispatch to The Globe says the Fed left rates unchanged as expected, but new quarterly projections showed nine central bank officials expect at least one rate hike by the end of 2026 amid higher inflation. Futures are pricing in a bigger chance that the Federal Reserve will deliver a rate hike as soon as September. The Dow fell 507.12 points to 51,492.55, the S&P 500 lost 91.25 points to 7,420.10 and Nasdaq lost 354.69 points to 26,021.66. The S&P/TSX Composite Index ended down 264.47 points at 35,125.11, after a record closing high on Tuesday. Oil prices edged back up on Wednesday after Mr. Trump said the agreement with Iran was not final and that the war could resume if he is unsatisfied. In Toronto, industrials fell 2.1 per cent as railway shares lost ground. The materials group was down 1.7 per cent as gold and copper prices fell. Energy lost 1.6 per cent.