(Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes rose as government bond yields slumped after the Federal Reserve reaffirmed its commitment to taming inflation and as crude oil prices fell.

The Nasdaq Composite jumped 1.7% to 26,429.1, the S&P 500 climbed 1.2% to 7,641.4, and the Dow Jones Industrial Average advanced 0.6% to 51,786.8 ahead of Thursday's close.

The US Federal Reserve raised its benchmark lending rate by 25 basis points in a unanimous vote on Wednesday to combat sticky inflation, while signaling another hike later this year. The Federal Open Market Committee lifted the fed funds rate to 3.75% to 4%, the first time it has tightened monetary policy since July 2023.

"After more than five years of significantly elevated inflation, a period which included a rate cutting cycle, the new Warsh Fed appears to be taking a step in the right direction to combat dangerously high price pressures," Lindsey Piegza, Stifel chief economist, said in a note.

US Treasury yields retreated after midday. The 10-year yield fell 7.1 basis points to 4.93%, and the two-year yield slid 5.4 basis points to 4.67%.

In a category of stocks with market capitalization exceeding $200 billion, Intel (INTC), Arm (ARM), and Advanced Micro Devices (AMD) were among the top 10, according to data compiled by Finviz.

The front-month US West Texas Intermediate crude oil contract dropped 1.3% to $101.15 per barrel, and the global benchmark North Sea Brent fell 1.8% to $103.91 per barrel.