Stocks staged a robust recovery Thursday, with the Nasdaq jumping 1.6% as markets digested the Fed's latest rate hike and falling Treasury yields signaled renewed investor confidence.
10-year Treasury yield fell over 5 basis points to 4.949%, reflecting reduced term premium after the Fed hike.
S&P 500 fell to the lowest close since July then rallied over 1% as traders moved past the Fed rate hike.
Nasdaq rallied over 400 points, or 1.6%, after the initial selloff on the Fed rate hike.
U.S. crude fell about 1% to around $100 a barrel on Saudi Arabia moving extra cargoes to Asia, easing supply worries.
Dow added 224 points after falling more than 630 points the day before, showing a rebound.
U.S. equities rebounded sharply on Thursday as investors moved past initial concerns regarding the latest Federal Reserve rate hike. The Nasdaq surged 1.6% and the S&P 500 climbed over 1%, while the 10-year Treasury yield retreated to 4.949%. Despite political pressure from the White House, Fed Chair Kevin Warsh maintained a firm stance on inflation, supported by cooling oil prices and resilient labor market data.
After an initial selloff that saw the S&P 500 hit its lowest close since July, markets rebounded on Thursday with the Nasdaq rising 1.6% and the S&P 500 gaining over 1%.
The 10-year Treasury yield fell over 5 basis points to 4.949%, indicating that investors are accepting the Fed's hawkish stance as a necessary measure to curb inflation.