US stocks rise more than 1 per cent on Federal Reserve rate hike

Traders at the New York Stock Exchange watching Fed chairman Janet Yellen speak on TV.
Traders at the New York Stock Exchange watching Fed chairman Janet Yellen speak on TV.PHOTO: REUTERS

NEW YORK (AFP) - US stocks jumped more than one per cent after the Federal Reserve announced the first interest rate hike in nine years on Wednesday (Dec 16) and promised a gradual approach to future rate hikes.

At the closing bell, the Dow Jones Industrial Average was up 1.3 per cent.

The broad-based S&P 500 rose 1.4 per cent and the tech-rich Nasdaq Composite Index 1.5 per cent.