Forex
Dow Soars on Rate Hike Relief as Fed Policymakers Signal Further Tightening
US stocks rebounded on Thursday after Wednesday's selloff as investors shook off concerns over the Federal Reserve's first interest rate hike since 2023.
The Dow Jones Industrial Average rose by 311 points, or 1.2%, while the S&P 500 gained 1.2% and the Nasdaq Composite climbed 1.59%.
Fed Chair Kevin Warsh struck a hawkish tone in his post-meeting remarks, stating that inflation remained 'too high' and financial conditions were not yet restrictive enough.
The Fed's updated dot plot showed that 16 of 18 policymakers expect at least one more quarter-point hike before the end of 2026.
Despite Thursday's gains, the S&P 500 remains down 1.7% for the month so far, a reminder that September has historically been a weak stretch for equities.