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US Market Indexes Gain and Fed Raises Rate

- By Julie Young

U.S. market indexes gained on Wednesday. For the day, the Dow Jones Industrial Average closed at 20950.10 for a gain of 112.73 points or 0.54%. The S&P 500 closed at 2385.26 for a gain of 19.81 points or 0.84%. The Nasdaq Composite closed at 5900.05 for a gain of 43.23 points or 0.74%. The VIX Volatility Index was lower for the day at 11.61 for a loss of -0.69 points or -5.61%.

Wednesday's market movers

Economic reports affecting market trading on Wednesday included the following:

  • The Federal Reserve increased the federal funds rate by 0.25%, bringing the new rate to 0.75% to 1.00%.
  • The Mortgage Bankers Association reported an increase of 3.1% in its mortgage applications index.
  • The Consumer Price Index increased 0.1% for the month and 2.7% for the year.
  • Retail sales increased 0.1% in February.
  • Business inventories increased 0.3%.
  • The Housing Market Index increased to 71 from 65.
  • The EIA Petroleum Status report showed a decrease of -0.2 million barrels in oil inventory for the week.

In the Dow Jones Industrial Average, the following stocks led gains:

Caterpillar (CAT) 1.63%

UnitedHealth (UNH) 1.61%

Verizon (VZ) 1.58%

Johnson & Johnson (JNJ) 1.50%

Chevron (CVX) 1.42%

DuPont (DD) 1.33%

ExxonMobil (XOM) 1.25%

Pfizer (PFE) 1.20%

In the broad market, energy stocks led gains and oil prices increased. Technology stocks were also higher for the day with the S&P 500 technology sector gaining 0.68%.

Small-cap stocks

In small-caps, the Russell 2000 Index closed at 1382.83 for a gain of 20.45 points or 1.50%. The S&P 600 Small-Cap Index closed at 841.91 for a gain of 12.33 points or 1.49%. The Dow Jones Small-Cap Growth TSM Index closed at 8279.58 for a gain of 126.05 points or 1.55%. The Dow Jones Small-Cap Value TSM Index closed at 9674.99 for a gain of 138.23 points or 1.45%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1729.28 for a gain of 22.16 points or 1.30%; the S&P 100 Index at 1058.61 for a gain of 7.18 points or 0.68%; the Russell 3000 Index at 1412.95 for a gain of 12.87 points or 0.92%; the Russell 1000 Index at 1321.90 for a gain of 11.42 points or 0.87%; and the Dow Jones U.S. Select Dividend Index at 659.19 for a gain of 8.56 points or 1.32%.

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This article first appeared on GuruFocus.