Stock futures inch higher after Fed raises rates by most since 1994

The U.S. stock index futures were higher on Wednesday after the Federal Reserve raised interest rates for the first time in more than two decades.

The futures contracts were tied to the stock market. The S&P 500 futures were up 0.21%.

The major averages ended the day higher, with the S&P 500 ending a five day losing streak. The S&P 500 gained over a point while the 30-stock benchmark added over a point. The tech-laden index rose 2.5%.

The market was expecting a 75 basis point rate hike by the Fed.

The chairman of the Federal Reserve said at a news conference that he did not expect the 75 basis point increase to be common.

After Powell said that a 50 or 75 basis point increase seems most likely at the next meeting in July, the stock market jumped. Powell said that decisions will be made at meetings.

The Fed's benchmark rate is expected to end the year at 3.4% according to individual members' forecasts.

The market has done a lot of the Fed's work for them in terms of stocks and bonds selling off over the past week, so it's not that surprising that both markets moved higher today.

The major averages are still below their records despite Wednesday's bounce.

The S&P 500 is down 21% and 32% from their all-time highs, while the Nasdaq is down 32%. The all-time high of the DOW on Jan. 5 is currently 17% below it.

Concerns about slowing economic growth and the possibility of a recession have weighed on the major averages.

Morgan Stanley chief U.S. equity strategist Michael Wilson said the market was ready for the hike. He said there was relief and that the hike wouldn't solve the inflation problem.

He said on CNBC that he doesn't think the bond market will benefit from the rate hikes.

The weekly jobless claims numbers will be included in the economic data out Thursday. Adobe and Kroger will provide quarterly updates.