US stock market hits record high, $1.15 trillion after Fed raises rates

By BARRY WILSON and ANNA BERNSTEINAssociated PressThe benchmark U.S. stock market has hit a record high on Friday as investors bet on a rate hike by the Federal Reserve that would bring down the cost of borrowing.

The Dow Jones Industrial Average gained as much as 2.7 percent to 21,811.06, while the S&P 500 gained 2.2 percent to 2,633.21 and the Nasdaq Composite rose 2.4 percent to 7,063.23.

The benchmark dollar rose against the yen and the euro, as well as the yen, while gold edged higher.

The Fed is expected to announce on Monday it will raise rates by 0.25 percentage points from December 1, an increase that would have a cascading effect on stocks.

The Federal Reserve will also begin to raise its benchmark benchmark interest rate by a quarter of a percentage point on Wednesday to 0.75 percent, the second increase in less than two months, which will push up rates on some sectors and spur the Fed to raise rates more.

While investors have been buying stocks and bonds to take advantage of a Fed rate hike, the economy has struggled to keep up with surging energy prices and a global trade war that has cut into global demand.

Investors have piled into stocks as the dollar rose as investors took advantage of higher oil prices and as the U.N. climate talks loom.

They are also buying gold, the main asset the U to use to protect against inflation, as they have in recent months.

The S&amps and the Dow Jones are both up more than 6 percent, with the NasDAQ up 1.4%.

The S&ps are up 3.5 percent and the S &ps are 2.5.

The Dow is up 17.7 points, or 2.1%.

The Fed, which sets rates, has not raised rates for about a year.

The Fed announced last month it would begin to move the benchmark interest rates up by a half-point on Wednesday and the first rate increase in two years.

The benchmark rate is set by the Fed on a monthly basis and was raised in December 2011 to a record-high of zero.

The Federal Open Market Committee, the Fed’s central bank, sets the central bank’s overnight interest rate, which is also called the target rate.

The central bank also has the power to boost the money supply, which allows for more purchases of Treasury bills and mortgage-backed securities.

A dollar fell against the greenback and the yen against the euro.

The dollar index is up more from an all-time low of 86.7 against the Australian dollar on Wednesday, and the dollar index of major currencies is up 0.7 from a three-week low.

The euro was up 0,1 percent against the dollar.

The U.K. and the European Union were hit by a massive drop in the number of people applying for asylum in Germany, which was expected to take a toll on the economy, and by a spike in new refugee arrivals from Turkey.