Dow futures hit an all-new all-year high on Sunday, surging 5.4% on the news the US Federal Reserve will increase interest rates and the market will likely see a record number of record-breaking corporate profits.
The Dow Jones Industrial Average gained nearly 400 points or 0.4%, or nearly 2% to 3,988.98, before closing up nearly 2.6% at 3,970.06.
The S&P 500 gained nearly 2%, or 0,7% to 2,965.21, while the Nasdaq Composite added 0.2%, or about 0.3%, to 4,838.88.
The CBOE Volatility Index rose 2.7% after rising 4.4%.
The index is the most volatile asset class in the US.
The Standard & Poor’s 500 index, the only major benchmark index that tracks companies, was up 3.3%.
The Nasdaq composite index rose 0.6%.
The S&P 500 was down 3.5%.
For the first time in more than three years, stocks and bonds closed higher on the day.
The rally in Dow futures came after the Federal Reserve lifted interest rates to 0.25% from 0.1%, and announced it would increase interest rate payments on US bonds by $1.5 trillion.
The Fed has been increasing its purchases of long-term government debt to help revive the economy.
The stock market has been buoyed by expectations that Fed policies are being met with increased borrowing and spending.
The US stock market is up more than 2,000 points since last Friday, when the Federal Open Market Committee began to cut its bond-buying program.
The market is also on the cusp of reaching its most successful annual percentage gain in nearly three years.
Investors were betting that President Donald Trump would increase stimulus spending and the Federal Deposit Insurance Corp. would raise its rates to offset rising costs.
Investors are also expecting the Federal Housing Finance Agency to increase mortgage rates to reduce mortgage defaults.
The Federal Reserve has already cut rates to a record low of 0.75%, and the Fed has raised rates for the first two quarters of 2018.
Investments in the S&am market are down 4.3% since March.
The Nason market index, which tracks the internet, fell 0.9%.
The Dow is down 4% since last Thursday.
The broader S&ams are down more than 3%.