Stocks clamber up after Fed’s 75-basis-point interest-rate hike
• The benchmark 10-year Treasury yield dropped by 9.3 basis points to 3.389%
US stocks closed higher after a choppy trading session on Wednesday, with S&P 500 and Dow ending their five-day losing streak after the Federal Reserve hiked the benchmark interest rates by 75 basis points.
The Dow Jones Industrial Average rose 303.70 points, or 1%, ending at 30,668.53, , after briefly climbing 600 points. The Nasdaq Composite gained 270.81 points, or 2.5%, finishing at 11,099.15.
The S&P 500 clambered up by 54.51 points, or 2.5%, closing at 3,789.99.
The yield on the benchmark 10-year Treasury note was down 9.3 basis points to 3.389%, after rising to its highest level since 2011 on Monday.
Stocks were volatile after the rate hike decision but jumped to session highs as Fed Chairman Jerome Powell said during his afternoon press conference that, “either a 50 basis point or a 75 basis point increase seems most likely at our next meeting.”
Market movers
Shares of Apple Inc. (NASDAQ: AAPL) shares rose 2% after it announced Major League Soccer would be exclusively available on Apple TV starting in 2023, in a 10-year deal estimated to be worth $250 million.
Robinhood Markets Inc. (NASDAQ: HOOD) shares fell 2.5% after an Atlantic Equities analyst lowered its rating to Underweight from Neutral, citing weakening market conditions.
All major sectors aside from energy, which slipped 2%, ended the day higher. Consumer discretionary saw the biggest gain, jumping 3%.
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