US stocks rebounded sharply on Thursday as falling Treasury yields and oil prices helped investors move beyond the previous day’s losses following the Federal Reserve’s first interest-rate hike in three years.
Technology stocks led the recovery, with the Nasdaq Composite posting the largest gain among the major indexes.
The Dow Jones Industrial Average rose 319.73 points, or 0.61%, to 51,774.38.
The S&P 500 gained 1.14% to 7,637.90, while the Nasdaq Composite advanced 1.66% to 26,410.50.
Tech stocks lead Wall Street rebound
Technology stocks drove the broader market higher, with several major companies posting strong gains. Nvidia and Amazon each rose about 2%, while Microsoft gained 1%.
Other stocks tied to the artificial intelligence trade also advanced. Qualcomm gained 2%, while Intel climbed 9%.
Gold and silver miners and semiconductor stocks were among the stronger-performing groups during the session.
Homebuilders also gained after data showed that single-family housing starts and pending home sales increased in August.
Interest rate-sensitive banks stabilised after falling 2.3% during Wednesday’s session following the Fed’s rate decision.
Crypto-linked stocks also moved higher after the US Securities and Exchange Commission introduced a five-year exemption for tokenised stock trading.
Circle Internet Group, Robinhood and Coinbase all closed higher.
Treasury yields and oil prices fall
The decline in Treasury yields provided another boost to equities.
The 10-year Treasury yield fell more than five basis points to 4.945%, moving back below the 5% level after rising above it following Wednesday’s Fed decision.
Oil prices also declined as concerns about supply disruptions in the Middle East eased. US crude fell less than 1% to around $101 a barrel, while Brent crude declined 1% to about $104.
The decline followed reports that Saudi Arabia had made additional crude cargoes available to Asian refiners through ship-to-ship transfers near Oman’s Sohar port.
The additional shipments helped ease concerns about disruptions to Saudi crude supplies.
However, oil prices remained elevated amid continuing tensions in the Middle East.
The decline in crude prices also contributed to a drop in the CBOE Volatility Index, which reached its lowest level in more than a week.
Markets assess Fed rate hike
The market rebound came a day after the Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4%. The move was the central bank’s first rate increase since July 2023.
Fed policymakers also indicated that another rate increase could come later this year as the central bank seeks to return inflation to its 2% target.
Financial markets were pricing in a 53.1% probability of another 25-basis-point hike at the Fed’s October meeting, up from 27.2% a week earlier, according to the CME FedWatch tool.
Meanwhile, weekly US jobless claims fell to near their lowest levels since 1969, supporting the view that the labour market remains resilient.
Not all stocks participated in Thursday’s rally.
CoreWeave fell after announcing plans to raise capital through stock and convertible bond offerings, while Fluence Energy tumbled after lowering its fiscal 2026 revenue forecast.