US Stocks Stage Comeback on Falling Oil Prices
US stocks staged a significant recovery on Thursday, posting their best day in six weeks. The S&P 500 gained 1.1%, its second rise in nine days, while the Dow Jones Industrial Average added 316 points (0.6%) and the Nasdaq composite climbed 1.7%.
The rebound was driven by falling oil prices, with Brent crude sliding to $US104.82 per barrel from a peak of nearly $US110 earlier in the week. This decline helped ease pressure on stocks and lowered bond yields, including the 10-year Treasury's yield, which fell to 4.93% from 5.01% on Wednesday.
Despite the Fed's decision to raise interest rates by a quarter percentage point for its first hike in over three years, the market showed resilience, with some reports suggesting that the economy may be strong enough to withstand higher borrowing costs.