Stocks Closed Higher after Fed Interest-rate Hike

U.S. stocks closed sharply higher on Wednesday after the Federal Reserve raised its key interest rate for the first time in nearly a decade. The Dow Jones Industrial Average added 224.18 points, or 1.28%, to 17,749.09. TThe S&P 500 gained 29.66 points, or 1.45%, to 2,073.07. he Nasdaq Composite rose 75.77 points, or 1.52%, to 5,071.13.

The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signalling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis. The central bank increased its key borrowing rate by 25 basis points to 0.25%-to-0.50%.

Oil fell more than 3 percent on Wednesday, snapping a two-day rebound after U.S. government data showed a surprise weekly build in crude inventories and the Federal Reserve raised interest rates for the first time in nine years. Brent January futures, which close on Wednesday, fell $1.26, or more than 3 percent, to settle at $37.19 a barrel.

Shares of Apple <AAPL.O> dipped on Wednesday on growing expectations that the consumer technology company may sell fewer
iPhones next year than previously thought.

Solar companies surged Wednesday after U.S. lawmakers agreed to extend a key federal tax credit. In a deal announced late Tuesday, Congress approved an additional five years for the investment tax credit, which is scheduled to end at the end of 2016.