Stocks Edge Modestly Higher After Fed Raises Interest Rates

U.S. stocks rose marginally after Federal Reserve raised its key interest rate by a quarter of a percentage point as was widely anticipated and signaled at least one more increase by the end of the year. Fed officials indicated that the 'gradual' shrinking of the $4.5 trillion balance sheet will begin this year. The S&P 500 was up 1 point at 2,441. The Nasdaq Composite was up 8 points, or 0.1%, to 6,229. The Dow Jones Industrial Average futures traded 46 points, or 0.2%, higher at 21,373. The yield on the 2-year Treasury note , the most sensitive to changes in Fed policy, trimmed earlier decline and was down 5 basis points to 1.32%.