U.S. stocks end sharply higher after Fed announces large rate hike to battle inflation

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U.S. stocks end sharply higher after Fed announces large rate hike to battle inflation
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All three major stock benchmarks closed sharply higher Wednesday, after the Federal Reserve said it was raising its benchmark interest rate by three-quarters of a percentage point in an effort to fight high inflation. The DJIA rose around 300 points.

All three major stock benchmarks closed sharply higher Wednesday, after the Federal Reserve said it was raising its benchmark interest rate by three-quarters of a percentage point in an effort to fight high inflation. The Dow Jones Industrial Average DJIA, +1.

00% rose around 300 points, or 1% higher, while the S&P 500 SPX, +1.46% gained 1.5% and the Nasdaq Composite COMP, +2.50% jumped 2.5%, according to preliminary FactSet data. The Fed's rate hike is the largest since 1994, bringing its benchmark rate to a range of 1.5% to 1.75%.

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