Markets breathe 'sigh of relief' after Fed hike

Markets across the world respond well to 0.25% increase

The S&P 500 closed up 1.5% yesterday following the Federal Reserve's announcement to raise interest rates by 0.25% for the first time in almost a decade.

The index closed at 2,073.07 as investors took the widely-expected hike as a vote of confidence in the US economy while the Dow Jones also rose 1.3% to 17,749 points. The Federal Open Market Reserve committee voted unanimously to raise rates, in a move that marks the first time the Fed has moved from the record lows of 0% to 0.25% since they were cut during the financial crisis in December 2008. 'The end of an era': Industry reacts to Fed rate rise Utilities and banking shares were among those that bounced with Goldman Sachs and J. P. Morgan Chase among the highest risers on the Dow...