Stocks climbed Wednesday, recovering from early losses after the Federal Reserve raised interest rates by a quarter point.
The central bank signaled further increases could come if inflation stays elevated, but investors appeared to look past the hawkish tone.
Major indexes reversed course in afternoon trading, with technology and growth shares leading the rebound.
Chip stocks surged after Intel offered upbeat comments on demand for data-center processors and broader semiconductor supply trends.
Intel’s remarks lifted peers across the sector, giving the Nasdaq a strong boost and easing recent pressure on hardware names.
Separately, the Securities and Exchange Commission cleared a path for trading tokenized stocks, a move that could bring blockchain-based shares to mainstream markets.
The decision opens the door for firms to offer digital representations of equities, though regulatory questions around custody and settlement remain.
Investors weighed the Fed’s rate path against resilient corporate earnings, keeping volatility elevated but sentiment supported.
Trading volume was above average as markets digested both the policy decision and the regulatory news on tokenized assets.
Analysts said the rally reflected relief that the Fed did not accelerate its tightening plans beyond expectations.
Attention now turns to upcoming inflation data and earnings reports, which could test the market’s renewed optimism.
