(CNBC) -- Stocks jumped sharply on Wednesday in a relief rally from their 2022 doldrums after the Federal Reserve raised rates by a widely anticipated half percentage point and Chairman Jerome Powell ruled out getting even more aggressive in the central bank’s inflation-fighting campaign.
The Dow Jones Industrial Average rose 933 points, or 2.8%. The S&P 500 gained nearly 3%. The tech heavy Nasdaq Composite jumped 3.2%. For both the Dow and S&P 500 , it was the biggest gain since 2020.
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The central bank announced that it was hiking its benchmark interest rate 50-basis-points, or 0.5 percentage points. That is the biggest increase since 2000 for the Fed, but the move was widely expected by investors.