US stock markets fell sharply for a second session on Wednesday after the Federal Reserve indicated it was finished with rate-cuts for the moment even as it slashed its economic growth forecasts and raised its projections for inflation and unemployment.

The day began in downbeat fashion as oil prices continued their relentless climb, cruising past $133 a barrel and casting a pall on equity indices. Spot oil prices hit above $134 in after-hours trading, up more than $5 on the day.