U.S. stocks climbed on Wednesday after the Federal Reserve delivered its biggest rate hike in almost three decades amid surging inflation, Trend reports citing Xinhua.
The Dow Jones Industrial Average rose 303.70 points, or 1.00 percent, to 30,668.53. The S&P 500 added 54.51 points, or 1.46 percent, to 3,789.99. The Nasdaq Composite Index increased 270.80 points, or 2.50 percent, to 11,099.15.
Ten of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and communication services up 3.02 percent and 2.36 percent, respectively, outpacing the rest. Energy slipped 2.13 percent, the lone declining group.
The Fed on Wednesday raised its benchmark interest rate by 75 basis points, the sharpest rate hike since 1994, as it races to damp inflation that is running at a four-decade high.
The Federal Open Market Committee (FOMC), the Fed's policy-making body, decided to raise the target range for the federal funds rate to 1.5 to 1.75 percent and "anticipates that ongoing increases in the target range will be appropriate."