Wall St rallies on gradual Fed tightening, improving economy

NEW YORK, Rabi’I 06, 1437, December 17, 2015, SPA — U.S. stocks rallied on Wednesday after the Federal Reserve announced it is raising its key policy rate for the first time in nearly a decade in a sign of confidence in the U.S. economy, according to Reuters.

Markets judged the Fed’s statement to be dovish, supportive of risk assets including equities. Defensive sectors of the market, recently hit in anticipation of the rate hike, were the best performers.

The Fed made clear that the 25-basis point rate hike was a tentative beginning to a “gradual” tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target.

–SPA
00:35 LOCAL TIME 21:35 GMT