Fed Raises Discount Rate (FCX, GLD, UUP)

The Federal Reserve announced Thursday after the market closed that it was raising the discount rate to 0.75% from 0.50%.

The Fed cited improvements in the financial markets as the primary reason for raising the discount rate, which is the rate it charges banks for emergency loans.

The Fed released a statement that said, "The modifications are not expected to lead to tighter financial conditions for households and businesses."

In reaction to this news commodities sold off and the dollar spiked. Freeport McMoRan (NYSE: FCX) and the SPRD Gold Shares (NYSE: GLD) were lower by 1.41% and 0.89%, respectively.

Shares of the PowerShares DB US Dollar Index (NYSE: UUP) jumped 0.38% in after hours trading.