U.S. stock indexes jumped Wednesday afternoon, after the Federal Open Market Committee delivered the first 50 basis-point interest rate hike since 2000 and outlined plans to reduce its near $9 trillion balance sheet.
Oil prices were up on news that the EU has proposed a ban on Russian oil.
On Tuesday, the Dow industrials DJIA, +2.81% rose 67.29 points, or 0.2%, to close at 33,128.79, the S&P 500 SPX, +2.99% gained 0.5% to finish at 4,175.48. The Nasdaq Composite COMP, 3.19% added 0.2% to end at 12,563.76.
What’s driving markets?
Stocks climbed sharply after the Federal Reserve pulled the trigger on a half percentage point interest rate hike, as expected, and announced the start of “quantitative tightening,” or reducing its near $9 trillion balance sheet.