Oil Price Slide and Rate Hike Fuel US Stock Market Rally
The US stock market saw gains on Thursday as oil prices retreated and investors returned to favored sectors following the Federal Reserve's first interest-rate hike under Chair Kevin Warsh. The policy decision aimed to manage inflation, which prompted a relief rally in equities.
Technology shares rose with Nvidia and Amazon adding more than 2% each. The gains were crucial in the second half of September, historically a weak month for equities, with the benchmark S&P 500 losing 1.7% so far this month.
Brett Mitstifer, chief investment officer of private banking and wealth management at Flagstar Bank, stated that 'the start of a hiking cycle can bring volatility, but volatility does not have to end a bull market.' He added that disciplined investors should view market dislocations as opportunities to upgrade quality.