US Stocks Bounce Back as Fed Rate Hike Eases Treasury Yields

The US stock market rebounded on Thursday after a rate hike by the Federal Reserve. The Fed raised interest rates for the first time since 2023, but eased pressure on Treasuries with a benchmark 10-year Treasury yield falling 2 basis points to 4.986%. The S&P 500 futures rose 0.8%, while Dow Jones Nasdaq 100 climbed 1.1%.

The rate hike was unanimous, with 16 of the 18 policymakers anticipating at least one more quarter-percentage-point hike by the end of this year. Fed Chair Kevin Warsh reiterated concerns over inflation, citing annualized price gains above 3% in many categories. However, he also noted that the US economy remains strong, with solid GDP growth and lower jobless claims.

Oil prices fell further, extending their losses to $104.33 a barrel for Brent crude futures and $101.34 a barrel for US West Texas Intermediate futures. The easing of supply concerns came after Saudi Arabia offered additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port.