Stocks recover, bond yields rise after Fed raises rates

By DAMIAN J. TROISE and ALEX VEIGA
AP Business Writers

U.S. stock indexes shook off an afternoon fade and were rallying in the final hour of trading Wednesday after the Federal Reserve announced its first interest rate hike since 2018. As Wall Street largely anticipated, the central bank announced it was increasing its key short-term rate by 0.25 percentage points. The move marks a shift in policy by the Fed away from maintaining ultra-low interest rates as it seeks to tame persistently high inflation. The S&P 500 was up 1.5%, the Dow Jones Industrial Average rose 0.9% and the Nasdaq rose 2.8%. Treasury yields rose sharply.