Stocks rise on Wall Street after Fed dials back stimulus

By DAMIAN J. TROISE and ALEX VEIGA
AP Business Writers

Stocks are higher on Wall Street after the Federal Reserve said it expects to raise interest rates three times next year as it seeks to tackle rising inflation. The central bank plans to shrink its monthly bond purchases at twice the pace it previously announced, likely ending them altogether in March. The S&P 500 shook off an early loss and was up 1.4%. The benchmark index is coming off two days of losses after setting a record high last Friday. The Dow Jones Industrial Average rose 1% and the Nasdaq gained 1.7%. Bond yields edged higher. The yield on the 10-year Treasury rose to 1.47%.