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

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 rose around 300 points, or 1% higher, while the S&P 500 gained 1.5% and the Nasdaq Composite 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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