[New York Stock Exchange] Oil and Bond Yields Fall... S&P 500, Nasdaq Close Up Over 1%

Losses from Fed Rate Hike Recovered
Tech Stocks Lead the Rally

On the 17th (local time), all three major indices on the New York Stock Exchange closed higher. As international oil prices and U.S. Treasury yields declined, buying interest—centered on technology stocks—helped offset the losses from the previous day, which had resulted from the Federal Reserve’s first interest rate hike in over three years.

On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose by 316.14 points (0.61%) to close at 51,778.04. The large-cap-focused S&P 500 index gained 85.95 points (1.14%) to end at 7,637.76. The tech-heavy Nasdaq Composite finished at 26,418.29, up 439.87 points (1.69%).

The day’s market rally was led by technology stocks. Among the "Magnificent 7" stocks, Nvidia climbed 2.54%, Amazon rose 2.13%, and Microsoft was up 1.52%. Shares related to artificial intelligence (AI) such as Qualcomm gained 2.09%, and Intel surged by 7.67%.

The decline in U.S. Treasury yields also supported investor sentiment. The yield on 10-year U.S. Treasury bonds—a global benchmark—fell by more than 7 basis points (1 bp = 0.01 percentage points) from the previous day, settling at 4.93%. After surpassing 5% following the Fed’s rate decision, the yield returned to the 4% range in just one day.

The drop in international oil prices also served as a positive factor for the stock market. On the New York Mercantile Exchange, October-delivery West Texas Intermediate (WTI) crude closed down 0.51% at $101.91 per barrel. Brent crude, the global pricing benchmark traded on ICE Futures Exchange, settled at $104.82 per barrel, falling 0.95%.

Reports that Saudi Arabia would increase crude oil supplies to Asian refiners via ship-to-ship transfers near Sohar Port in Oman helped ease concerns about supply disruptions.

The New York stock market rebounded after falling the previous day due to the aftermath of the Fed’s rate hike. The Fed raised its benchmark interest rate by 0.25 percentage points at the September Federal Open Market Committee (FOMC) meeting. Fed policymakers indicated the possibility of additional hikes within the year, and Fed Chair Kevin Warsh emphasized that inflation remains excessively high.

Robert Conzo, CEO of Wealth Alliance, summarized the market’s reaction as “relief,” adding, “It appears the market is relieved that the Fed is actively addressing the persistent inflation issue.”

However, some point out that, depending on how the war in the Middle East unfolds, market volatility could increase dramatically. CEO Conzo noted, “If oil prices remain at elevated levels, the resultant higher costs will be passed through to consumer prices by retailers. The longer high oil prices persist, the greater the problem will become, making inflation even harder to control.”

This content was produced with the assistance of AI translation services.