Like most of the market on Wednesday, PayPal Holdings (NASDAQ: PYPL) finished lower on the day, dropping 4.4% to $79.45 at the closing bell.

It came as no surprise as the major indexes were all down with the Dow Jones Industrial Average dropping 505 points (-1.6%), the S&P 500 falling 96 points (-2.5%), and the Nasdaq sinking 366 points (-3.4%).

There is not a lot of mystery as to why PayPal, along with the rest of the market, dropped on Wednesday. The catalyst was the Federal Reserve Board, which raised interest rates by 75 basis points today, its fourth straight hike. The benchmark federal funds rate, after this hike, is now in the 3.75% to 4% range.

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Source Fool.com