NEW YORK — Stocks are closing with solid gains after the Federal Reserve nudged interest rates higher and signaled that any further increases this year will be gradual.
Bond prices rose, pushing yields lower.
The lower bond yields sent high-dividend stocks like utilities and real estate investment trusts higher.
Financial stocks fell. Capital One Financial lost 2 percent.
Small-company stocks rose more than the rest of the market.
The Standard & Poor's 500 index rose 19 points, or 0.8 percent, to 2,385. It started the day higher, and its gains accelerated after the Fed's announcement.
The Dow Jones industrial average gained 112 points, or 0.5 percent, to 20,949. The Nasdaq rose 43 points, or 0.7 percent, to 5,900.
Seven stocks rose for every one that fell on the New York Stock Exchange.