Market Indexes Bounce Back After Initial Rate Hike Reactions

The market indexes bounced back from the Fed's rate hike on Wednesday, as investors reassessed their expectations for future interest rates. The Nasdaq Composite rose 1.4%, the S&P 500 gained 0.9%, and the Dow Jones Industrial Average added 0.4% by late Thursday morning.

Intel's CEO Lip-Bu Tan attributed the company's limited CPU demand to manufacturing capacity and memory shortages, which sent Intel shares up 8.6%. Micron Technology rose 5.8% and SK Hynix gained 3.9%, while Nvidia climbed 2.5% and Advanced Micro Devices increased by 6.2%.

The dot plot shows that 10 of 18 Fed officials expect no rate cuts at all through 2029, which contradicts the market's initial reaction to Wednesday's decision. The 10-year Treasury yield fell more than 5 basis points to 4.949%, and U.S. crude slipped about 1% to roughly $100 a barrel.