US stock markets settled higher on Wednesday after the Federal Reserve raised interest rates for the second time in three months, as expected, but did not flag any plan to accelerate the pace of monetary tightening.

The Dow Jones Industrial Average went up 112.73 points or 0.54 percent to settle at 20,950.10. NASDAQ 100 index gained 34.08 points or 0.63 percent to close at 5,416.25. The broader S&P 500 index rose 19.81 points or 0.84 percent to end at 2,385.26.