Oil Price Drop Boosts US Stocks Amid Federal Reserve Rate Hike

The US stock market saw significant gains on Thursday as oil prices retreated for the second consecutive day. This boost in sentiment helped alleviate concerns after the Federal Reserve's first rate hike under chair Kevin Warsh, which was aimed at tackling inflation.

With technology shares leading the charge, Nvidia and Amazon both rose nearly 2% each. The gains come as a crucial reprieve for investors in the second half of September, historically a weak month for equities, with the benchmark S&P 500 having lost 1.7% so far this month.

'Although the argument that energy prices are elevated because of a temporary disruption in the Middle East may be true, inflation has been above target for over five years,' said Chris Zaccarelli, chief investment officer at Northlight Asset Management, praising Warsh's decision to raise rates 'very well'.