Dow rallies 400 points as S&P 500, Nasdaq hit fresh 14-month highs despite hawkish Fed and ECB

U.S. stocks traded sharply higher Thursday with the Dow Jones Industrial Average up nearly 400 points, while the S&P 500 index and Nasdaq Composite reached fresh 14-month highs as investors digested a raft of U.S. economic data while shrugging off a hawkish Federal Reserve and another interest-rate hike from the European Central Bank.

How is the market doing?

On Wednesday, the Dow Jones Industrial Average fell 233 points, or 0.68%, to 33,979, the S&P 500 increased 4 points, or 0.08%, to 4,373, and the Nasdaq Composite…