NEW YORK (CNNMoney.com) - Stocks gained Tuesday afternoon after the Federal Reserve boosted a key short-term interest rate by a quarter-percentage point, as expected, and hinted that an end to the rate-hiking campaign was on tap.

The Dow Jones industrial average (up 5.56 to 10,773.33, Charts) and the S&P 500 (up 1.04 to 1,261.49, Charts) index both added 0.5 percent shortly after the 2:15 p.m. ET announcement, after having been only modestly higher before the statement. The Nasdaq composite (down 5.43 to 2,255.52, Charts) was flat, recovering from losses before the statement.

Fed officials meeting Tuesday decided to boost the Fed funds rate, an overnight bank lending rate, by a quarter-percentage point to 4.25 percent, as expected, at the conclusion of their policy-setting meeting at around 2:15 p.m. ET. It was the 13th consecutive increase since the central bank began its rate-hiking campaign in June 2004.

In the closely watched statement, the central bank again acknowledged the pressure of higher energy prices and the fall hurricanes, but said that economic expansion appears to be solid. However, the bank changed the language lower in the statement to indicate a potential pause might be on tap.

Treasury prices showed little reaction to the news, remaining barely higher. The yield on the 10-year note stood at 4.54 percent, down from 4.55 percent late Monday. Treasury prices and yields move in opposite directions.