Dow Jones explodes 930 points higher despite Fed half-percent rate hike

NEW YORK, New York – Despite a Fed rate hike of 50 basis points, the biggest increase in 22 years, U.S. stock markets rallied hard on Wednesday.

“It’s a testament to how well they messaged, that you deliver a 50-basis point hike and there is not so much as a blink in the market” Simona Mocuta, chief economist at State Street Global Advisors in Boston told Reuters news agency Wednesday. “I would say very incrementally I found it slightly less hawkish than I thought it would be.”

The Dow Jones exploded 930.37 points or 2.81 percent higher to 34,061.06.

The Standard and Poor’s 500 jumped 124.69 points or 2.99 percent to 4,300.17.

The Nasdaq Composite did best of all in percentage terms, rallying 401.10 points or 3.19 percent to 12,964.86.

The U.S. dollar was sold off sharply despite the official interest rate increase. The euro thundered higher to 1.0607. The British pound jumped to 1.2623. The Japanese yen rose to 129.14. The Swiss franc strengthened to 0.9731.

The Canadian dollar rose a cent to 1.2743. The Australian dollar was sharply higher at 0.7254. The New Zealand dollar rallied to 0.6547.

Overseas, the Paris-based CAC 40 shed 1.24 percent. The Dax in Germany was off 0.49 percent. The FTSE 100 in London dropped 0.90 percent.

Markets in Japan and China were closed due to public holidays.

The Australian All Ordinaries gave up early gains to close down 22.84 points or 0.30 percent at 7,564.80.

In New Zealand, the S&P NZX 50 declined just 0.71 of a point or 0.01 percent to 11,675.21.

South Korea’s Kospi Composite edged down 2.89 points or 0.11 percent to 2,677.57.

In Hong Kong, the Hang Seng fell 232.37 points, or 1.10 percent to 20,859.52.