US stocks rise as financials prosper

US stocks soared today as investors welcomed strong earnings from financial services companies, upbeat economic data and some reassuring news from the Federal Reserve.

The Fed’s decision to raise short-term interest rates by another quarter-percentage point to 1.75% did not come as a surprise to the market. The widely anticipated decision and the statement issued alongside it were viewed as a signal that the central bank sees continued improvements in the economic outlook and inflation.