Market Indexes Recover After Fed's Rate Hike
Following a sharp decline after the Federal Reserve raised interest rates, U.S. stock indexes rebounded on Thursday as investors reassessed their initial reaction to the decision. The Nasdaq Composite rose 1.4%, while the S&P 500 gained 0.9% and the Dow Jones Industrial Average added 0.4%. Chip stocks led the recovery with Intel reporting strong demand for CPUs despite manufacturing constraints, which boosted its stock by nearly 8.6%. Memory makers like Micron Technology also saw gains as soaring memory prices remain a key market theme. The broader macroeconomic environment supported the rally: the yield on the 10-year Treasury fell below 5%, and oil prices dropped after reports of increased Saudi crude supply to Asian markets. Caterpillar, closely tied to AI data center construction, contributed significantly to the Dow's recovery with an almost 2% gain. The Fed raised rates unanimously by a vote of 12-0, bringing its target range to between 3.75% and 4%. The central bank’s dot plot suggests that most officials expect at least one more rate hike this year, with some projecting no cuts through the end of 2029.
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Topics: chip_sector_bullish_move fed_rate_hikes stock_index_performance