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.

The Dow Jones Industrial Average rose 316.14 points, or 0.61 per cent, to 51,778.04. The S&P 500 added 85.95 points, or 1.14 per cent, to 7,637.76. The Nasdaq Composite Index increased by 439.88 points, or 1.69 per cent, to 26,418.3.

Nine of the 11 primary S&P 500 sectors ended in the green, with technology and consumer discretionary leading the gainers by adding 2.2 per cent and 1.43 per cent, respectively. Financials and consumer staples were the only laggards by falling 0.1 per cent and 0.01 per cent, respectively.

Equities found upward momentum as market participants reassessed Federal Reserve Chairman Kevin Warsh's hawkish remarks at a post-meeting press conference. Analysts noted that the policy move helped reinforce the central bank's inflation-fighting credibility.

Meanwhile, global energy markets retreated modestly after US Energy Secretary Chris Wright stated that Saudi Arabia's East-West pipeline, a critical bypass route for oil supplies disrupted around the Strait of Hormuz, is expected to return to operation soon.

The West Texas Intermediate for October delivery lost 52 cents, or 0.51 per cent, to settle at US$101.91 a barrel on the New York Mercantile Exchange. Brent crude for November delivery decreased by US$1.01, or 0.95 per cent, to settle at 104.82 dollars a barrel on the London ICE Futures Exchange.

The 10-year Treasury yield, which serves as a benchmark for a wide range of interest rates, including those for mortgages, corporate bonds, and other loans, recently traded around 4.94 per cent.

However, "the odds see the 10yr yield breaking back above 5 per cent in the days and weeks ahead," wrote analysts with international banking institution ING. "If so, the market will begin to settle at above five per cent and ponder the 5.25 to 5.5 per cent range as an area that is perfectly attainable in light of the still quite loud mood music that has been driving long-end yields."

The technology sector spearheaded Thursday's advance, lifted by renewed buying interest across mega-cap leaders and AI hardware providers. Nvidia and Amazon both climbed more than two per cent, while Microsoft gained 1.5 per cent.

Other semiconductor equities extended their gains, with Qualcomm advancing more than 2 per cent and Intel surging more than 7 per cent to pace the broader tech rally