Stocks dropped Wednesday on choppy afternoon trade as market participants reacted to the Federal Reserve's latest monetary policy decision and its potential impact on the economy. The Dow Jones Industrial Average tumbled over 500 points, while the S&P 500 and Nasdaq Composite fell 1.7% and 1.8%, respectively.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): -1.71% or -66.00 points to 3,789.93

Dow Jones Industrial Average (DIA  ): -1.70% or -522.45 points to 30,183.78

Nasdaq Composite Index (QQQ  ): -1.79% or -204.86 points to 11,220.19

The Federal Open Market Committee (FOMC) raised its benchmark policy rate by 0.75% for a third consecutive time on Wednesday, bringing the federal funds rate to a new range of 3.0% to 3.35%--its highest level since 2008--from its previous range of between 2.25% or 2.5%.

The central bank also raised its terminal rate, or how far it expects to hike interest rates, to 4.6% in 2023. The Fed also expects to hike rates to 4.4% by the end of the year, meaning there will be at least one more 0.75% rate hike.

"The extent of the aggressiveness that the Fed is signaling did indeed surprise us," said Mark Cabana, head of the U.S. short rates at Bank of America (BAC  ), quoted by CNBC. "This is very consistent with the recent shift in commentary from the Fed, and it certainly sounds like a Fed that is absolutely okay risking recession, brining inflation lower with restrictive monetary policy."

Chair Jerome Powell maintained that the Fed will continue to act aggressively to stabilize prices in remarks after the FOMC decision Wednesday afternoon.

"My main message has not changed since Jackson Hole," Powell said, referring to his policy speech at the Fed's annual symposium in August. "The FOMC is strongly resolved to bring inflation down to 2%, and we will keep at it until the job is done."

The S&P 500 ended Wednesday's session down over 10% for the past month and 21% off its 52-week high. Market participants have traded anxiously throughout the month as many fear the Fed's moves could tip the U.S. economy into a recession even before Wednesday's policy decision.

Elsewhere, General Mills (GIS  ) shares rose on Wednesday after the company reported better-than-expected quarterly earnings and raised its full year sales outlook despite higher inflationary pressures impacting consumer spending power.

Beyond Meat (BYND  ) also gained on Wednesday after announcing its first plant based meat option with its collaboration with Taco Bell (YUM  ): Beyond Carne Asada Steak. The news helped boost Beyond shares after the company's stock took a hit earlier this week after it suspended Chief Operating Officer Doug Ramset over this recent arrest for a road rage incident.