U.S. stock indices rose on Thursday after the Federal Reserve increased interest rates yesterday for the first time in a year, buoying banking and financial shares on Wall Street.
Banks and financial companies drew support from the Fed's decision to hike rates, while forecasting three more hikes next year, while would raise demand on banks due to their higher yield.
On the other hand, earlier U.S. data showed improvement in inflation last month, which affirms the bank's view of stronger inflation in recent months, and pushed the bank to increase rates to counter it.
Wall Street also drew support from upbeat industrial data, which helped manufacturing shares and offset the negative effect of dollar's rise on exporter's shares.
Standard and Poor's 500 rose 0.66%, or 14.93 points to 2,268.21, while Dow Jones gained 0.49%, or 97.39 points to 19,889.92.
Tech-heavy NASDAQ climbed 0.45%, or 24.54 points to 5,461.22.
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