US stocks: Tech leads Wall Street to higher close as oil eases, Treasury yields dip

On Thursday, September 17, US stock markets experienced a strong rebound, driven by easing oil prices, falling US Treasury yields, and encouraging labor data. The three major indices, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all closed higher for the day, with the Nasdaq leading the gains. Robert Pavlik, a senior portfolio manager at Dakota Wealth, noted that investors were showing interest in sectors that had been impacted by the anticipation of the Federal Reserve's interest rate hike.

Oil prices fell, touching a one-week low after concerns about supply disruptions eased due to reports of Saudi oil moving through Oman. The Federal Reserve had raised interest rates for the first time since July 2023, aiming to bring inflation closer to its 2% target. The market's response to the Fed's decision was largely positive, with the likelihood of another rate hike at the next meeting in October increasing to 53.1%, up from 27.2% a week earlier.

Labor data showed that initial jobless claims dipped to near-1969 lows, providing further support for market optimism. The gainers in the S&P 500 were largely in the tech sector, while financials and consumer staples were the only two sectors to close lower. Gold and silver miners, as well as chip-related stocks, also outperformed, with some advancing by more than 3%.

Homebuilders and crypto-linked stocks also saw gains, benefiting from improved housing data and the Federal Reserve's announcement of a five-year exemption for tokenized stock trading.