US stocks rise after Fed’s expected interest rate hike
• The Nasdaq Composite gained 469.85 points, or 4.1%, at 12,032.42
US stocks rallied on Wednesday, after the Federal Reserve raised its benchmark interest rate by another 0.75 percentage point to combat inflation.
The Dow Jones Industrial Average jumped 436.05 points, or 1.4% to close at 32,197.59. The S&P 500 crawled up 102.56 points, or 2.6%, to end at 4,023.61. The Nasdaq Composite finished with a gain of 469.85 points, or 4.1%, at 12,032.42.
Stocks hit their highs of the session in the afternoon as Fed Chairman Jerome Powell left the door open about the size of the central bank’s rate move at its next meeting in September and noted it would eventually slow the magnitude of rate hikes. Powell said in a press conference that the Fed could hike by 0.75 percentage points again in September, but that it would be dependent on the data.
Market movers
The 10-year Treasury yield fell 5.5 basis points to 2.731%.
Shares of Kraft Heinz Co. (NYSE: KHC) declined 6% Wednesday, after the company reported second-quarter net income of $265 million, or 21 cents per share, after a loss of $27 million, or 2 cents per share, last year.
Shares of Texas Instruments Inc. (NASDAQ: TXN) shares rose 6.7% Wednesday after the chip maker reported a big earnings beat for the quarter and an upbeat outlook.
Shares of Meta Platforms (NASDAQ: META) rose nearly 6.6%, ahead of its earnings scheduled for after the bell.
Also read:
US inflation jumps to 9.1%, highest rate since 1981 as consumer pressures intensify
