Stocks head higher after Fed hikes rates

Stocks are headed upwards after the Federal Reserve raised its key federal funds rate to 0.75% to 1.0% on Wednesday.

All three major indexes rallied after the Fed announced its decision that indicated inflation has moved closer to its goal of 2% and the economy remains strong.

The Dow was up 97 points for the day at 20,934.51 as of 2:10 p.m. ET, roughly 50 points above its level before the announcement. The S&P 500 was up 16 points at 2.381.77 and the Nasdaq ws higher by 37 point at 5,894.06

The three major indexes had been up slightly, but mostly quiet in the run-up to the Fed decision.

In addition, bond yields sank after the Fed announcement while gold rallied.

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