Fed Raises Rates by 25 Basis Points Amid Expectations of Further Hikes

The Federal Reserve raised interest rates by 25 basis points in a unanimous decision for the first time in three years.

Nasdaq futures rose 0.9%, while S&P 500, Dow, and Russell 2000 futures increased 0.7% after the rate hike.

However, retail sentiment on SPY and QQQ remained bearish despite the recovery in futures.

The updated dot plot shows that 16 of 18 officials project at least one additional 25-bps rate increase before the end of the year.