Stocks drop on rate increase.(Business)

Byline: Associated Press

NEW YORK - Stocks fell slightly Tuesday after the Federal Reserve raised interest rates as expected, exacerbating traders' ill humor following a disappointing profit forecast from Dell Inc.

The Fed's one-quarter percentage point hike in the nation's benchmark interest rate, pushing it to 4 percent, was widely anticipated. The Fed also signaled it would continue gradually raising rates, but noted that inflation has had relatively little effect on the economy in recent months.

Stocks may be falling because of sentiment on the Street that the hikes are unwarranted. This increase and the one or two expected to follow may simply …