US Equities Jump After Fed Raises Rates, Sees Two More in 2017

But the Fed’s policy-setting committee did not flag any plan to accelerate the pace of monetary tightening.

Federal Reserve Chair Janet Yellen says she had a “brief” meeting with President Donald Trump. This news could provide some support going into the Fed announcement. They discussed global economic developments and financial regulation. The stock of the disappearing-message company hit a high of $29.44 on March 3.

Authorities in the USA have yet to sign off on the deal.

IBM was up 1.2 percent and was the top stock on the Dow.

The S&P 500 added 19.81 points, or 0.84 percent, to 2,385.26. Eastern time, after meandering between small gains and losses through the day. European bank stocks .SX7E touched their highest point in more than a year after an European Central Bank policymaker kindled talk of a possible rate hike. The so-called dot plot of where policy makers expect rates to be over the next three years indicated a two additional rate increases this year, in line with previous forecast. That’s the same as their December forecast.

USA two- and three-year yields, which are most vulnerable to Fed policy, fell from multi-year highs touched during morning US trading. Manufactured goods prices also increased this month.

Their mostly status quo outlook was also seen in their economic projections.

In Asia, Tokyo’s Nikkei 225 index rose 0.1 percent, Hong Kong’s Hang Seng added 2.1 percent, and Seoul’s Kospi rose 0.8 percent.

In markets overseas, France’s CAC 40 stock index rose 0.3 percent, and Germany’s DAX and the FTSE 100 in London both added 0.1 percent. That would keep headline consumer inflation at 2.5 percent, well above the Fed’s targeted 2 percent pace. Utility stocks in the S&P 500, which pay some of the biggest dividends in the index, rose 0.8 percent.

The markets were anticipating an increase in a key interest rate by the Federal Reserve, which the Fed announced Wednesday. The Nasdaq Composite Index was up 43.23 points, or 0.74 percent, to 5,900.05. US stocks posted solid gains Wednesday as Wall Street digested the Federal Reserve’s decision to raise interest rates.?The Dow Jones Industrial Average rose 112.73 points, or 0.54 percent, to 20,950.10. The S&P 500’s energy sector closed down 0.6% Thursday. Prices for benchmark 10-year Treasuries US10YT=RR gained 8/32 to yield 2.497 percent, from 2.524 percent late on Thursday.

The Fed is widely expected to raise rate by a quarter point, and is likely to sound more upbeat about the economy.

The Fed said industrial production was unchanged in February after edging down by a revised 0.1 percent in January. The dollar gave up some ground vs. the euro and the yen, and the 10-year yield dipped 2 basis points to 2.58%.

Gold rose $3.10 to settle at $1,230.20 per ounce.