For Dec. 16, 2015, here's the top stock market news and stocks to watch based on today's market moves...
Dow Jones: 17,749.09; +224.18; +1.28%
S&P 500: 2,073.07; +29.66; +1.45%
Nasdaq: 5,071.13; +75.78; +1.52%
The Dow Jones Industrial Average today (Wednesday) gained 224 points after the U.S. Federal Reserve hiked its benchmark interest rate by 25 basis points. It's the first time the U.S. central bank has increased rates since 2006 and marks an end to its zero-interest-rate policy (ZIRP), at least temporarily. Federal Reserve Chairwoman Janet Yellen said the U.S. economy has "held up and grown at a solid pace" in 2015 and said continued growth or higher inflation could warrant further rate increases. Money Morning Capital Wave Strategist Shah Gilani says the rate hike is already "baked in" to the equities market. What really matters is what happens after today's announcement, which we preview here.
Meanwhile, the housing sector received a positive shot in the arm on news that new construction starts increased by 10.5% in November. Housing starts are now at a seasonally adjusted annual rate of 1.173 million, according to data from the U.S. Commerce Department. Housing stocks surged on the positive news. Shares of Toll Brothers Inc. (NYSE: TOL) gained 3% on the day, while D.R. Horton Inc. (NYSE: DHI) gained more than 2.5%.
Follow us on Twitter @moneymorning or like us on Facebook.Â
[mmpazkzone name="end-story-hostage" network="9794" site="307044" id="138536" type="4"]