U.S. shares and Treasury yields rose after the Federal Reserve raised interest rates by three-fourths of a percentage point, the biggest increase since 1994.
The Dow Jones Industrial Average leaped 1.8%, the S&P 500 jumped 1.3%, and the Nasdaq Composite (.IXIC) climbed 2.9%.
Some investors said trading was choppy as the market weighed the risks of surging prices versus a cooling economy.
Markets had rallied on Wednesday before the Fed meeting, buoyed by a surprise announcement from the European Central Bank.
Bond yields in countries such as Italy, Spain, and Portugal – which will benefit from the ECB’s plans – pulled back.
Given many U.S. borrowing rates are linked to yields, financial conditions have already tightened markedly there.
The dollar index gave up early gains after the Fed’s rate rise and was down 0.11% in the early afternoon.
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