Market Bounces Back from Fed Rate Hike, Led by Chip Stocks

Wednesday's rate hike by the Fed sent shockwaves through Wall Street, knocking more than 630 points off the Dow. However, the market rebounded on Thursday with chip stocks leading the way.

Nvidia (NVDA) was a major contributor to both the S&P 500 and Nasdaq Composite, rising 2.5% after analysts posted bullish reports. Intel (INTC) CEO Lip-Bu Tan stated that his company can only meet 50% of CPU demand due to limited manufacturing capacity and memory chip shortages.

The 10-year Treasury yield fell more than 5 basis points to 4.949%, dropping below the 5% level crossed on Wednesday. Oil prices also relaxed, with U.S. crude slipping about 1% to $100 a barrel and Brent falling 2% to around $102.