Dow surges 300 points Wednesday in relief rally after Fed gives rate hiking timeline; European markets close higher as investors focus on Fed decision 
U.S. stocks cut their losses and moved higher on Wednesday as the market got past one of the big uncertainties heading into year-end. The Federal Reserve signaled a more aggressive unwinding of its monthly bond buying, as expected by the market, and forecast multiple rate hikes on the way next year. 
The S&P 500 rose 1.3%, while the tech-heavy Nasdaq Composite jumped 1.7%. The Dow Jones Industrial Average added 305 points. All three were in negative territory for the day before the central bank’s decision. 
The Fed announced on Wednesday that it would wind down its asset purchases, a process known as tapering, at a faster pace amid a continued rise in inflation. The Fed will be buying $60 billion per month of bonds starting in January, down from December’s rate of $90 million, and said that it will likely continue that trajectory in the months ahead. 
The move comes as the central bank is grappling with the highest inflation level in nearly four decades. The Fed was widely expect to accelerate its taper this month. 
This sets the stage for a dramatic policy shift that will clear the way for a first interest rate hike next year. The central bank signaled on Wednesday that its members see three hikes in 2022. 

The pan-European Stoxx 600 added 0.3% by the close, with tech stocks gaining 1.4% while retail slid 1.7%. 
In terms of individual share price movement on Wednesday, Irish support services firm DCC climbed 8.9% after acquiring U.S. appliances and electronics company Almo Corporation, prompting JPMorgan to raise DCC’s target price. 
At the bottom of the European blue chip index, Belgian retail group Colruyt tumbled 9% as investors balked at its first-half results. 
Source: CNBC, Investing.com