Stocks fell on Wednesday as market participants digested the Federal Reserve's latest monetary policy decision. The Dow Jones Industrial Average fell over 100 points, while the S&P 500 and Nasdaq Composite declined 0.6% and 0.7%, respectively.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): -0.61% or -24.33 points to 3,995.32

Dow Jones Industrial Average (DIA  ): -0.42% or -142.29 points to 33,966.35

Nasdaq Composite Index (QQQ  ): -0.76% or -85.93 points to 11,170.89

Major averages fell to session lows Wednesday afternoon after Fed Chair Jerome Powell noted that more economic data is needed for the central bank to begin changing its view on inflation, signaling that the Fed is going to remain aggressive heading into the new year.

"The inflation data received so far for October and November show a welcome reduction in the monthly pace of price increases. But it will take substantially more evidence to give confidence that inflation is on a sustained downward path," Powell said in remarks following the Fed's December policy decision Wednesday afternoon.

The central bank issued a 50-basis point rate hike on Wednesday, marking a smaller interest hike after four consecutive 75-basis point rate increases throughout the year. This increase brings the Fed's benchmark rate to a targeted range between 4.25% and 4.5%, the highest level in 15 years.

While the smaller hike was highly anticipated, market sentiment was impacted by policymakers signaling that they will raise interest rates through next year. The Fed also forecasts rates will rise to 5.1% before it stops hiking, bring the Fed's terminal rate above the 4.6% signaled back in September.

This week is reasonably the last week of major U.S. economic news and events for the year, with retail sales numbers for November slated for release on Thursday. Market participants will also react to policy decisions from central banks around the world on Thursday, including a decision from the Bank of England.

Elsewhere, Tesla (TSLA  ) shares fell on Wednesday after Goldman Sachs (GS  ) cut its price target for the electric carmaker's stock to $235 from $305. This comes as Tesla's stock has declined throughout the year, with shares down over 60% year-to-date.

However, Goldman analyst Mark Delany maintained the stock's Buy rating, noting that Tesla "remains well positioned for long-term growth as an EV cost structure and full solutions leader (e.g. providing vehicles, charging, storage, software and services in a well integrated manner)."