- Retegui hat-trick fires five-star Atalanta to hammering of Genoa
- Heavyweights Australia, England off to World Cup winning starts
- Visiting UN refugee agency chief decries 'terrible crisis' in Lebanon
- Spinners come to party as England defeat Bangladesh at T20 World Cup
- Search continues for missing in deadly Bosnia floods
- Man City sink Fulham to get title bid back on track
- France's Auradou whistled on Pau return in Perpignan loss amid ongoing rape case
- A 'forgotten' valley in storm-hit North Carolina, desperate for help
- Arsenal hit back in style after Southampton scare
- Hezbollah heir apparent Safieddine out of contact after strikes
- Liverpool stay top of Premier League as Arsenal, Man City win
- In dank Tour of Emilia, Pogacar shines in rainbow jersey
- DR Congo launches mpox vaccination drive, hoping to curb outbreak
- Trump returns to site of failed assassination
- Careless Leverkusen held to Bundesliga draw
- O'Brien's 'superstar' Kyprios posts landmark win on Arc weekend
- Liverpool suffer Alisson injury blow
- Habosi helps Racing beat Vannes before Auradou's playing return
- Thousands march in London in support of Palestinians, 1 year after Oct 7
- Israel readying response to Iran missile attack
- Schutt, Mooney help Australia beat Sri Lanka in Women's T20 World Cup
- Liverpool extend Premier League lead with win at Palace
- Djokovic 'shakes rust off' to make third round of Shanghai Masters
- 'Imperfect' PSG fighting on all fronts - Luis Enrique
- Struggling Pakistan look to thwart adaptable England
- Child 'trampled to death' in asylum seekers' Channel crossing: minister
- Gauff fights back to set up Beijing final against Muchova
- Guardiola claims Premier League won't delay season for Man City
- Israel to mark October 7 attack as Gaza war spreads
- Gauff fights back to reach China Open final
- Recovering Stokes ruled out of first Pakistan Test
- Hezbollah battles troops on border as Israel pounds Lebanon
- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
US stocks rally, dollar retreats as Fed lifts interest rates
Wall Street stocks rallied and the dollar retreated Wednesday after the Federal Reserve announced a large 50 basis points interest rate increase but ruled out an even bigger hike for the foreseeable future.
The decision -- which follows weeks of anticipation and speculation as Fed officials have vowed a tough response to inflation -- came as European officials proposed a gradual ban on Russian crude, lifting oil prices.
With inflation at the highest rate in four decades, Federal Reserve Chair Jerome Powell sent a message directly to the American people, expressing concern for the pain caused by rising prices, and pledging to use all available tools to bring them down.
Wednesday's interest rate hike, the biggest since 2000, was coupled with a move to begin reducing the central bank's bond holdings from June 1, marking the Fed's most aggressive steps so far to counter inflation.
Powell said half-percentage point increases "should be on the table at the next couple of meetings," but added that a three-quarter point increase "is not something the committee is actively considering."
Stocks rallied off the remarks as Powell also expressed confidence the US central bank could engineer a "soft landing" that tames inflation without sending the economy into a recession.
Major US indices powered about three percent higher, while the dollar retreated against the euro and other currencies.
Art Hogan, strategist at National Securities, said the Fed's decision met expectations but contained "no hawkish surprise," adding that stocks could push higher in the coming sessions.
Some analysts have viewed the stock market as positioned for a potential rally after suffering deep losses in April amid worries over the Fed.
The central bank's announcement followed data showing slowing growth in the US services sector and lackluster private-sector hiring that reflected limited labor capacity. The report comes ahead of Friday's closely-watched government jobs data.
In earlier trading, European stocks closed down, after a broadly downbeat session in Asia, although key bourses including Shanghai and Tokyo remained shut.
Oil prices rebounded sharply after the European Commission proposed a gradual ban on Russian crude over Moscow's invasion of Ukraine.
The Fed announcement is due one day before the Bank of England is also predicted to deliver a hike.
India's central bank unexpectedly ramped up its key rate by 40 basis points to 4.4 percent on Wednesday.
Policymakers are seeking to tackle runaway prices but risk damaging global economic recovery from the pandemic.
Investor sentiment also remains dogged by the fallout from Russia's ongoing Ukraine invasion, which has fueled bumper gains for many raw materials including crude.
- Key figures at around 2100 GMT -
New York - Dow: UP 2.8 percent at 34,061.06 (close)
New York - S&P 500: UP 3.0 percent at 4,300.17 (close)
New York - Nasdaq: UP 3.2 percent at 12,964.86 (close)
London - FTSE 100: DOWN 0.9 percent at 7,493.45 (close)
Frankfurt - DAX: DOWN 0.5 percent at 13,970.82 (close)
Paris - CAC 40: DOWN 1.2 percent at 6,395.68 (close)
EURO STOXX 50: DOWN 1.0 percent at 3,724.99 (close)
Hong Kong - Hang Seng Index: DOWN 1.1 percent at 20,869.52 (close)
Tokyo - Nikkei 225: Closed for a holiday
Shanghai - Composite: Closed for a holiday
Brent North Sea crude: UP 4.9 percent at $110.14 per barrel
West Texas Intermediate: UP 5.3 percent at $107.81 per barrel
Euro/dollar: UP at $1.0625 from $1.0521 on Tuesday
Pound/dollar: UP at $1.2632 from $1.2499
Euro/pound: DOWN at 84.06 pence from 84.18 pence
Dollar/yen: DOWN at 129.05 yen from 130.14 yen
T.Batista--PC