After the Federal Reserve's largest rate hike since 1994, the Dow Jones Industrial Average gained more than 300 points after several days of selling off. The Fed raised its benchmark overnight lending rate, the federal funds rate, by 75 basis points (0.75 percentage points) in an attempt to combat surging inflation, which showed no signs of slowing in May. The federal funds rate now sits within a range of 1.5% and 1.75%.

Furthermore, Fed Chairman Jerome Powell said that he expects the Fed's rate-setting committee to do another rate hike of 50 or 75 basis points at its meeting in July. 

"Clearly, today's 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common," Powell said at the post-meeting press conference. He added: "We want to see progress. Inflation can't go down until it flattens out. If we don't see progress ... that could cause us to react. Soon enough, we will be seeing some progress."

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Source Fool.com