Stocks climb, led by energy companies and dividend payers

NEW YORK (AP) - Stocks clambered higher Wednesday for their biggest gain in two weeks and easily absorbed the Federal Reserve's latest increase in interest rates, a move that was widely expected.

What was perhaps unexpected was the big drop in bond yields and the dollar's value against other currencies following the Fed's announcement. The central bank stressed that it plans to move gradually and stuck to its projection that it will raise rates a total of three times this year. That cooled speculation among some investors the Fed could move more aggressively.

The Standard & Poor's 500 index jumped 19.81 points, or 0.8 percent, to 2,385.26. It had been up through the day, and the gains accelerated immediately after the Fed made its announcement.

The Dow Jones industrial average rose 112.73 points, or 0.5 percent, to 20,950.10. The Nasdaq composite picked up 43.23 points, or 0.7 percent, to 5,900.05. The Russell 2000 index of small-company stocks jumped 20.45 points, or 1.5 percent, to 1,382.83. Gains were widespread, and seven stocks rose on the New York Stock Exchange for every one that fell.

The Fed raised short-term interest rates by a quarter of a percentage point, its third such move since the end of 2015. The move was widely expected after various Fed officials gave speeches telegraphing the increase and reports showed the economy continues to strengthen and inflation has picked up.