U.S. stocks open higher after Fed's decision

U.S. stocks opened higher on Friday, as investors continued to digest the U.S. Federal Reserve's decision to raise interest rates.

In view of realized and expected labor market conditions and inflation, the Federal Open Market Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent, said the Fed in a statement after concluding a two-day policy meeting.

The Fed also released its updated economic projections, which indicated that the central bank forecasts three rate hikes next year, while in its September projections, Fed officials expected only two rate hikes in 2017.

"Today is a 'quadruple witch' expiration Friday," said Stephen Guilfoyle, president of Sarge986. "That may not mean all that much to the retail investor, but in the business, this means that trading volumes will increase dramatically around the bells."

On the economic front, U.S. privately-owned housing starts in November were at a seasonally adjusted annual rate of 1.09 million units, 18.7 percent below the revised October estimate, the Commerce Department announced on Friday.

Shortly after the opening bell, the Dow Jones Industrial Average was up 46.49 points, or 0.23 percent, to 19,898.73. The S&P 500 gained 4.91 points, or 0.22 percent, to 2,266.94. The Nasdaq Composite Index rose 14.20 points, or 0.26 percent, to 5,471.05.

U.S. stocks rallied on Thursday, as investors continued to digest the U.S. Federal Reserve's rate hike decision amid economic data. Endi