Wall Street Finds Relief After Fed Rate Hike as Oil Prices Ease
Wall Street experienced a significant bounce back on Thursday as easing oil prices and dropping US Treasury yields provided relief after the Federal Reserve's first interest rate hike in over three years.
The Fed raised its target rate for the first time since July 2023, aiming to bring about a 'timelier return' to its 2% inflation goal. Financial markets now price in a 53.1% likelihood of another 25-basis-point rate hike at the Fed's next meeting in October.
The easing oil prices, which touched a one-week low after supply disruption fears were calmed by reports of Saudi oil moving through Oman, contributed to the market's rally. Crude prices have soared since the onset of the US-Israeli war against Iran, feeding into broader global inflationary pressures.