Wall Street enjoyed a solid advance yesterday after the Federal Reserve raised short-term interest rates for the 10th time in more than...

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NEW YORK — Wall Street enjoyed a solid advance yesterday after the Federal Reserve raised short-term interest rates for the 10th time in more than a year but changed its policy statement to say longer-term inflation expectations are contained. The market saw the Fed statement as a sign that the central bank’s streak of rate increases may be nearing its end.

The Dow Jones industrial average rose 78.74 to 10,615.67 after three days of losses.

Microsoft, one of the 30 Dow stocks, advanced 22 cents to close at $27.35 a share. Boeing, also a Dow stock, soared $1.14 to $67.13.

Broader stock indicators also advanced. The Standard & Poor’s 500 index rose 8.25 to 1,231.38, and the Nasdaq composite index rose 9.80 to 2,174.19.

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Stocks bumped higher after the Fed’s announcement although investors had expected the rate increase to 3.5 percent, a four-year high. The Fed signaled that at least one more rate increase is coming, but many investors expect three more.

Wall Street was also soothed as crude-oil futures fell to $63.07 a barrel, down 87 cents, on the New York Mercantile Exchange. Oil hit a record intraday high of $64.27 Monday after the announcement the U.S. Embassy in Saudi Arabia would close for two days due to threats.

Investors also cheered Labor Department data showing work-force productivity rose at a slower rate than it had in the first quarter. Labor costs also grew at a slower rate than the previous nine months. Analysts are looking for the economy to grow at a moderate pace, since torrid growth might lead to inflation and even more interest-rate increases.

Bonds rose, with the yield on the 10-year Treasury note at 4.39 percent, up from 4.42 percent late Monday, the highest yield since April. The U.S. dollar was up against the euro in European trading. Gold prices were higher.

The market has spent most of the year nearly flat, which suggests investors are worried about energy costs, consumer spending, housing and the economy, in addition to interest rates, said Jeff Kleintop, chief investment strategist for PNC Financial Services Group in Philadelphia.

After strong second-quarter earnings and months of positive economic data, the market’s consensus is that the Fed’s rate increases are justified. But, because of the other factors that could affect the economy, investors are split on whether the Fed’s jumps will be enough to contain inflation without causing a recession.

“While the market has priced in three more rate hikes after today, what it is less sure of is if the Fed will be successful, no matter how many rate hikes,” Kleintop said.