US stocks rise as retreating oil, Fed rate hike ease inflation concerns
NEW YORK: US stocks rebounded on Thursday as crude oil prices edged lower and investors digested the Federal Reserve's first interest rate hike in over three years, reported Xinhua.
US stocks experienced a rebound on Thursday, as retreating oil prices and the Federal Reserve's first interest rate hike in over three years helped ease inflation concerns. The Dow Jones Industrial Average climbed 316.14 points, or 0.61%, to 51,778.04, while the S&P 500 added 85.95 points, or 1.14%, to 7,637.76. The Nasdaq Composite Index rose by 439.88 points, or 1.69%, to reach 26,418.3.
Nine out of the 11 primary S&P 500 sectors closed in the green, with technology and consumer discretionary leading the gains by 2.2% and 1.43%, respectively. Financials and consumer staples were the only underperformers, falling by 0.1% and 0.01%, respectively. Market participants reassessed Federal Reserve Chairman Kevin Warsh's hawkish remarks at a post-meeting press conference, which bolstered equities' upward momentum.
Global energy markets saw a modest retreat after US Energy Secretary Chris Wright announced that Saudi Arabia's East-West pipeline, a vital bypass route for oil supplies disrupted in the Strait of Hormuz, would soon resume operations. West Texas Intermediate for October delivery dropped 52 cents, or 0.51%, to $101.91 a barrel, while Brent crude for November delivery decreased by $1.01, or 0.95%, to $104.82 a barrel.
The 10-year Treasury yield, which serves as a benchmark for various interest rates, settled around 4.94%. Analysts at ING noted that if the yield breaks above 5% in the coming days and weeks, the market would begin to trade at the 5% level and consider the 5.25-5.5% range as attainable, given the ongoing market sentiment.
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