Global markets recouped some of their recent losses on Wednesday as investors reacted to pivotal meetings by economic policymakers trying to rein in inflation without denting economic growth or destabilizing markets.
On Wall Street, the S&P 500 rose 1.4 percent, bouncing off a five-day losing streak that had left the index in a bear market.
The main event of the day was the meeting of the Federal Reserve, which raised its benchmark interest rate by three-quarters of a percentage point, the biggest increase since 1994.
The markets remained fairly steady just after the decision was released because “there was no real surprise from the statement,” said Edward Moya, a senior market analyst at OANDA. “Markets were expecting the Fed to deliver a supersized rate hike, as all the recent data shows inflation expectations just are not easing any time.”
Earlier, the European Central Bank unexpectedly got in on the action, calling an unscheduled meeting of policymakers on Wednesday to discuss market conditions. The borrowing costs of eurozone countries have diverged sharply in recent weeks, leading to so-called fragmentation that Christine Lagarde, the E.C.B. president, said last week the bank would “not tolerate.” The bank said it was taking steps to fend off spiraling borrowing costs in some highly indebted European countries, including a move to “accelerate” the design of a new tool to combat fragmentation — though it did not provide more details about the tool.
Many European stock and bond markets rallied on the news of the E.C.B. meeting. The Stoxx 600 index rose about 1.4 percent.
Earlier in the day most Asian markets gained ground, with the Hang Seng in Hong Kong gaining 1.1 percent and the Shanghai composite in China up 0.5 percent, though the Nikkei in Japan closed 1.1 percent lower.