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

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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
    • 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
    • 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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