Stocks Rise Amid Interest Rate Hike and Cooling Oil Prices
The global stock market rebounded strongly on September 17 after the US Federal Reserve raised interest rates for the first time since 2023. The Fed's decision was seen as a move to curb inflation, which has been at a high level for too long.
According to Laodong.vn, the Dow Jones industrial index rose by 0.6% to 51,778.04 points, while the S&P 500 increased by 1.1% to 7,637.76 points. The technology-oriented Nasdaq index led the recovery with a gain of 1.7%, closing at 26,418.30 points.
The European markets also saw gains, with the FTSE 100 in London rising by 1.2% to 10,816.14 points, and the CAC 40 in Paris increasing by 0.6% to 8,186.93 points.
Market sentiment was further boosted when Brent crude oil prices fell 1% to $104.82 USD/barrel, while WTI oil dropped to $101.91 USD/barrel. Concerns about supply disruptions eased after Saudi Arabia announced the restoration of half of the East-West pipeline's capacity to the Red Sea.
However, analysts at JPMorgan Chase warn that geopolitical uncertainties remain a concern, particularly with regards to the Strait of Hormuz and potential oil price spikes above $100 USD/barrel.