Wall St rises as Fed raises rates

Dhaka,  Wed,  20 September 2017
Published : 16 Mar 2017, 10:42:47
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US stocks rise as Fed raises interest rates

Wall St rises as Fed raises rates
US stocks rose sharply on Wednesday after the Federal Reserve raised interest rates for the second time in three months, as expected.

The Fed, which raised its target rate by 25 basis points, or a quarter of a percentage point, to between 0.75 and 1.00 per cent, did not however flag any plan to accelerate the pace of monetary tightening, a concern that had lingered among some market participants.

Markets were expecting the Fed's decision and traders had priced in more than a 90 per cent chance of a quarter-point rate increase, according to federal funds futures.

The Dow Jones Industrial Average rose 112.73 points, or 0.54 per cent, to 20,950.1, the S&P 500 gained 19.81 points, or 0.84 per cent, to 2,385.26 and the Nasdaq Composite added 43.23 points, or 0.74 per cent, to 5,900.05.

The Russell 2000 index of small-cap stocks rose 1.5 per cent, while financials on the S&P 500 were the worst-performing sector.

US retail sales recorded their smallest gain in six months in February, setting US gross domestic product on track to grow at a 0.8 per cent annualised pace in the first quarter.

Energy stocks boosted the S&P 500 as oil prices rose for the first time in more than a week on a surprise drawdown in US crude inventories. 

US crude CLc1 gained 2.6 per cent to $48.96 per barrel and Brent LCOc1 added 2.3 per cent to $52.08.

Exxon shares rose 1.2 per cent and Chevron added 1.4 per cent.

Apple closed up 1.1 per cent at $140.46 after RBC raised its price target on the stock.

Twitter ended down 1.9 per cent at $15.03 after a number of prominent accounts on the microblogging website were hacked, according to Reuters.
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