Stocks Rise Sharply as Fed Hikes Rates, Oil Prices Fall

The US stock market experienced a significant rally on Thursday after the Federal Reserve raised interest rates to combat rising inflation. The S&P 500 surged 1.2%, while the Nasdaq Composite rose 1.7%. The Dow Jones Industrial Average jumped 365 points, or 0.7%, and the Russell 2000 index increased by 1%.

The gains in stock indexes were driven by substantial increases in tech shares, including Nvidia, Amazon, Microsoft, Intel, and AMD.

Meanwhile, bond yields declined as investors became more confident in the Fed's intentions under its new chairman, Kevin Warsh. The 10-year Treasury yield dropped to a low of 4.94%, while the 30-year yield fell to as low as 5.29%.