U.S. equities rebound as oil prices dip and Treasury yields retreat
U.S. stocks climbed Thursday, recouping most of the week’s losses after Brent crude fell and 10-year Treasury yields eased.
Wall Street saw a broad rally on Thursday, with the S&P 500 up 1.1%, the Dow Jones Industrial Average gaining 358 points and the Nasdaq climbing 1.6% as investors digested a drop in Brent crude to about $104.79 a barrel. The oil decline helped pull the 10-year Treasury yield down to 4.95%, relieving some of the borrowing-cost pressure that had weighed on equities. This market bounce comes after the Federal Reserve raised its benchmark rate by a quarter-point, its first increase in over three years, and hinted at further hikes later this year.
Analysts noted that the rate move reinforced confidence that the Fed is committed to bringing inflation back to its 2% target, despite concerns about higher financing costs. Meanwhile, AI-related stocks such as Nvidia and Advanced Micro Devices posted gains, and home-builder shares rose on easing mortgage-rate pressures.
Why it matters
The shift shows how commodity prices and bond yields can quickly reverse market trends after a major Fed rate hike.
How this story developed
- Aug 19 Fed officials warn higher rates may be needed if inflation stays elevated
- Sep 10 The ECB implemented a 0.25‑point rate increase across its three principal rates.
- Sep 11 The Bank of Japan is expected to lift its policy rate by 25 basis points next week, reaching 1.25%, and may signal a quicker pace of future hikes if inflation risks rise.
- Sep 11 Asian stock markets fell on Friday, mirroring Wall Street losses, while Brent crude rose above $108 a barrel as geopolitical strains between the United States and Iran intensified.
- Sep 11 Fed minutes revealed a 9‑3 vote to keep rates near 3.6% and a drop in market odds for a September hike to about 67%.
- Sep 11 August US CPI held steady at 3.4% year‑over‑year and core CPI fell to 2.4%.
- Sep 12 Oil prices rose to just below $109 a barrel as Middle‑East tensions escalated.
- Sep 12 Markets priced in a strong chance of another quarter‑point hike in December.
- Sep 15 The National Institute of Statistics reported a sharp increase in Mexico's inflation for August, the biggest rise since early 2023, largely due to higher fuel prices.
- Sep 16 The BOJ is now expected to raise its policy rate to 1.25% at the upcoming meeting.
- Sep 16 The government introduced a short‑term ten‑centavo per litre discount on gasoline and diesel for August and plans to raise the diesel discount to twenty centavos in September while cutting the gasoline subsidy.
- Sep 16 The Federal Reserve announced a quarter-point increase in its benchmark rate, marking the first hike since the previous administration and the first under Chair Kevin Warsh.
- Sep 16 The Fed announced a quarter‑point increase to its key interest rate.
- Sep 17 Fed increased the federal funds rate by 25 basis points to a 3.75‑4 percent target range in its first hike since 2023, with a 12‑0 vote.
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