Fed Rate Hike Boosts Stocks Amid Oil Price Drop

The US stock market rebounded strongly after the Federal Reserve's decision to raise interest rates for the first time in over three years.

The S&P 500 jumped 1.1%, its second increase in nine days, while the Dow Jones Industrial Average rose by 316 points, or 0.6%. The Nasdaq composite climbed 1.7%.

The rally was fueled by falling oil prices and easing pressure from the bond market, which had been causing concern for investors. The price of Brent crude oil dropped to $104.82 per barrel, down from its earlier peak of nearly $110.

Fed Chairman Kevin Warsh cited geopolitical tensions and the threat of higher inflation as reasons for the rate hike. He also mentioned the strengthening economy as a factor in the decision.