The Nasdaq jumped more than 1% on the back of falling oil prices and bond yields
The market is trying to recover after the Fed's first rate hike in three years
Photo: X/NYSE
U.S. stocks rose at the start of trading on Thursday, September 17, thanks to a decline in oil prices and U.S. Treasury yields. If this trend continues, today could be the best day for stocks since early August, according to Bloomberg.
The Nasdaq Composite Index rose 1.6% immediately after the market opened, although the gain slowed to about 1.3% in the minutes that followed. The broad-market S&P 500 Index initially gained 1.3%, then less than 1%. The Dow Jones Industrial Average, a blue-chip index, rose 0.9%, then slowed to 0.6%.
Brent crude oil futures fell 2.8% during Thursday's trading, to $102.9 per barrel. U.S. WTI crude oil futures dropped about 2% to $100.5 per barrel.
The yield on 10-year Treasuries has once again fallen below 5%, dropping more than 5 basis points, according to CNBC. Earlier this week, it reached its highest level since 2007. Yields on 2-year and 30-year U.S. Treasury bonds also fell—to approximately 4.657% and 5.3%, respectively.
On Thursday, investors are trying to recoup some of the losses they suffered the day before after the U.S. Federal Reserve (Fed) raised interest rates for the first time in three years—to 3.75–4%, according to CNBC. Tech stocks are driving Thursday’s market rally: Nvidia rose more than 2%, Amazon gained just under 2%, and Microsoft rose more than 1%. Shares of companies involved in artificial intelligence infrastructure also rose: Applied Materials was up 0.5%, Qualcomm was up 3.5%, and Intel jumped 8%.
"Sentiment is buoyant, partly due to the decline in crude oil prices for the second day in a row, [as well as] easing pressure on bond yields. ‘Yesterday, the Fed came across as quite “hawkish,”’ said Forex.com analyst Fawad Razaqzada in a Bloomberg report. The sell-off in stocks following the Fed’s decision was an “overreaction,” creating a buying opportunity, added Bob Edwards, chief investment officer at Edwards Asset Management.
This article was AI-translated and verified by a human editor
