Stocks on Wall Street are closing solidly higher Wednesday after the Federal Reserve ratcheted up its campaign against surging inflation by raising its key interest rate three-quarters of a point.

The Fed's latest hike lifts the benchmark short-term rate to its highest level since 2018.

The S&P 500 gained 2.6% and the technology heavy Nasdaq jumped by the most in over two years.

The Dow Jones Industrial Average also closed higher.

Strong earnings from Google's owner Alphabet, Microsoft and other companies helped lift investors' mood.