NEW YORK (AP) — Stocks closed higher after the Federal Reserve nudged interest rates higher for the first time in nine years, a vote of confidence in the U.S. economy.
At the same time the Fed also said Wednesday that it would make any future interest rates gradually, something that will help support financial markets.
Bank stocks rose as investors expected rates on loans to increase, which would help banks become more profitable. JPMorgan rose 2.2 percent.
The Dow Jones industrial average climbed 224 points, or 1.3 percent, to 17,749.
The Standard & Poor’s 500 index gained 29 points, or 1.5 percent, to 2,073. The Nasdaq composite rose 75 points, or 1.5 percent, to 5,071.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.29 percent.
