The Dow Jones Industrial Average jumped by 80 points on Wednesday to secure a new record after the Federal Reserve raised a key interest rate by 25 basis points, or one-quarter of one percent.

The Dow rose by 0.33% to a new high of 24,585. The Nasdaq was up by 0.20%. The S&P 500 dropped slightly, by 0.05%, after being up for most of the session.

The iShares US Home Construction ETF (ITB) - Get Report  declined by 0.07%. The Financial Select Sector SPDR ETF (XLF) - Get Report  dropped by 1.2%.

Word that Republicans in the House and Senate have agreed on the terms of a tax bill aided the market's overall gains.

The tax agreement sets the stage for a final vote next week on legislation that would cut taxes for corporations and the wealthy and give President Trump his first major victory in Congress.

Caterpillar Inc. (CAT) - Get Report  rose 3.5%, Boeing Co. (BA) - Get Report   gained 0.64% and Nike Inc. (NKE) - Get Report  jumped 3.4%.

Finisar Corp. (FNSR) - Get Report jumped 22% after Apple Inc. (AAPL) - Get Report invested $390 million in the laser chipmaker. Finisar is Apple's second-largest supplier of the laser technology that Apple uses for facial-recognition capabilities in the iPhone X.

Apple is a holding in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stock? Learn more now.

Bank of America Corp. (BAC) - Get Report  declined 1.6%, JPMorgan Chase & Co. (JPM) - Get Report  dropped 1.2% and Goldman Sachs Group Inc. (GS) - Get Report   fell 0.73%. 

Consumer prices in the U.S. rose 0.4% in November, matching forecasts as gas prices moved higher. Core CPI, which strips out food and energy, rose 0.1%.

Image placeholder title

Global oil prices pared gains on Wednesday after data from the U.S. Energy Information Administration Wednesday showed that domestic crude supplies fell by 5.1 million barrels in the week ended Dec. 8, wider than forecasts.

West Texas Intermediate crude was down 1% to $56.60 a barrel.

Walt Disney Co. (DIS) - Get Report shares rose less than 1% amid reports that the company is close to an agreement with Twenty-First Century Fox Inc. (FOXA) - Get Report that would see the Rupert Murdoch-led group sell some of its key media assets for around $40 billion.

VeriFone Systems Inc. (PAY) fell nearly 4% after the company issued a disappointing outlook.

Vertex Pharmaceuticals Inc. (VRTX) - Get Report rose 2.7% after analysts at Deutsche Bank initiated coverage of the Boston-based biotech with a "buy" rating and a price target of $175.

The dollar index, which benchmarks the greenback's strength against a basket of six global currencies, was softer at 93.96.