Fed Rate Hike Sends Markets into Rebound Mode

Markets are rebounding Thursday after the Federal Reserve's first interest rate hike in three years, which brought the Fed's key rate to a target range of 3.75%-4.00%.

The quarter-point increase could result in higher borrowing costs for mortgages, auto loans, and credit cards, and the Fed signaled it may raise rates again to 4.1% in its quarterly projections.

US stock market indices mostly declined following the Fed's announcement, but futures are pointing to a rebound Thursday: S&P 500 futures rose 0.8%, Dow Jones Industrial Average futures gained 0.7%, and Nasdaq futures climbed 1.1%.