US Stocks Surge as Oil Prices Retreat, Fed Hikes Interest Rates
US stock indexes surged on Thursday as oil prices retreated for the second day in a row, boosting market sentiment and offsetting concerns about interest rates. The Federal Reserve's decision to hike interest rates for the first time under Chair Kevin Warsh marked a key step in controlling inflation, but also sparked uncertainty about future rate increases.
The S&P 500 index rose 1.06% to 7,631.86, while the Dow Jones Industrial Average jumped 0.61% to 51,778.04. The tech-heavy Nasdaq Composite advanced 1.59% to 26,390.96.
Technology shares led gains, with companies like and rising more than 2%. The small-cap index also fared well, adding over 1% despite its sensitivity to interest rates.
The yield on the benchmark slipped, taking some pressure off equities. However, traders see a near 51% chance of another rate hike in October, according to CME's FedWatch.