U.S. Equities Jump After Fed Raises Rates, Sees Two More in 2017

Yellen's Rate Hike Press Conference in Two Minutes

U.S. stocks jumped after the Federal Reserve raised its benchmark lending rate a quarter point and maintained its expectation for two more increases this year. Utility and real estate shares led the late-day rally as 10-year Treasury yields fell the most in two months.

The S&P 500 Index extended earlier gains to a 0.8 percent advance by 4 p.m., the best single-day gain in two weeks. The Dow Jones Industrial Average added 112.73 points to 20,950.10 and the Russell 2000 Index added 1.5 percent.

  • Utility shares jump 1.6% with real estate stocks up 1.9%
    • 10-Year Treasury yield down 10 basis points to 2.5%
  • Energy shares remain biggest winner on day, up 2.1% with oil up 2.5% for the first gain in eight sessions
  • 10 of 11 sectors higher with financial stocks only group lower after erasing earlier gains after Fed announcement
  • Traders in Fed funds futures had fully priced in a quarter-point hike in borrowing costs today
  • VIX dips to 11.6
  • About 7.7 billion shares traded hands, 23% more than on Tuesday
  • With the earnings season nearing its end, about three-quarters of S&P 500 firms that have reported results exceeded profit estimates and about half beat sales forecasts, according to data compiled by Bloomberg
  • Central bank updates from Japan, the U.K., Switzerland and Indonesia are also due this week -- all are expected to stand pat with policy decisions
  • ECONOMY:
    • March New York Fed Empire Index at 16.4, Est. 15
    • U.S. consumer prices show biggest annual increase since 2012
    • Real avg. weekly earnings rose 0.1% M/m in Feb., according to BLS
    • U.S. retail sales in February posted the smallest gain in six months, indicating a tempering of the consumer spending that’s been carrying the economy
  • EARNINGS:
    • After-market Wednesday: Oracle Corp (ORCL), Williams-Sonoma (WSM)
    • Pre-market Thursday: Dollar General (DG), PTC Therapeutics (PTCT)
  • The Stoxx Europe 600 Index added 0.4% as mining companies rallied 1.7%

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