Major indices in the US stock market closed with gains Wednesday after the Federal Reserve made its first rate hike since late 2018.

The Fed raised interest rates by 25 basis points to range between 0.25% and 0.50% -- a move widely expected by investors.

The central bank also signaled it could make an additional six rate hikes for the remainder of 2022.

Markets have been pricing in as much as seven rate increases but as low as four for this year.

Although the Fed's projection is hawkish, it did not create much effect before the final bell as uncertainty amid the Fed's monetary policy has been removed until May.

The Dow Jones industrial average was up 518 points, or 1.55%, to 33,063 at the close. The S&P 500 jumped 95 points, or 2.24%, to end at 4,357.

The Nasdaq rallied almost 488 points, or 3.77%, to finish the day at 13,436.

The VIX volatility index, known as the fear index, plummeted 10.6% to 26.67. The dollar index was down 0.73% to 98.47.

The yield on 10-year US Treasury notes gained 0.9% to 2.179%.

Precious metals were on the rise with gold adding 0.35% to $1,924 per ounce and silver increasing 0.76% to $25.07.

Crude prices continued their decline, pulling back from last week's 14-year highs.

Global benchmark Brent crude was trading at $97.58 per barrel, down 2.3%, while US benchmark West Texas Intermediate (WTI) was at $94.80 -- a 1.7% loss./aa