Stocks Jumped as Fed Raised Rates

U.S. stocks jumped and closed higher on Wednesday after the Federal Reserve hiked interest rates and confirmed expectations of two more rate hikes this year. The Dow Jones Industrial Average rose 112.73 points, or 0.54%, to 20,950.10. The S&P 500 advanced 19.81 points, or 0.84%, to 2,385.26. The Nasdaq Composite gained 43.23 points, or 0.74%, to 5,900.05.

For the first time this year, the Federal Reserve raised interest rates, a widely expected move following strengthening economic reports and signals from Fed officials. After its two-day policy meeting, the Federal Open Market Committee voted to raise the range of the federal funds rate to 0.75% and 1.00%, citing progress in labor market growth, business fixed investment and inflation.

Oil prices ended their long losing streak Wednesday, as a drop in the dollar in the wake of the Federal Reserve’s decision to raise interest rates fed an earlier rebound. April West Texas Intermediate crude rose $1.14, or 2.4%, to settle at $48.86 a barrel. May Brent crude gained 89 cents, or 1.8%, to $51.81 a barrel.