- US stock indices rose following the Federal Reserve's interest rate hike and inflation warning
- Nasdaq Composite gained 1.44%, S&P 500 rose 1.06%, and Dow Jones increased 0.8% by morning trading
- US jobless claims fell to 196,000, the lowest since July, indicating labor market stability
US benchmark indices were trading in green on Thursday, September 17 a day after the Federal Reserve raised interest rates and warned that inflation remains elevated.
Nasdaq Composite surged 1.44% or 375 points to 26,353.61, S&P 500 climbed 1.06% or 80 points to 7,632.46, while Dow Jones jumped 0.8% or 412 points to 51,873.9 by 9:31 am ET or 7:01 pm IST.
Here are three reasons why US stock market is in green today —
US Jobless Claims Fall
US unemployment benefit applications dipped to the lowest level since July, while recurring claims declined to a more than two-year low, highlighting stability in the labour market. Initial claims slipped 10,000 to 196,000, for the week ended on September 12, one of the lowest figures since 1969, according to data released by US Labor Department on Thursday.
Slipping Oil Prices
Brent crude extended its decline on Thursday, slipping below $105 a barrel amid signs of easing supply disruptions in the Middle East reduced some of the risk premium built into oil prices. West Texas Intermediate crude also dropped, trading near $101 a barrel. The dip in oil prices come following reports that Saudi Arabia is working to restore around half the capacity of its damaged East-West pipeline within days, with full operations targeted in about six weeks. The pipeline, which runs across Saudi Arabia to its Red Sea coast, is particularly important because it offers an alternative route for exports that avoids the Strait of Hormuz.
Treasury Yields Below 5%
The 10-year US Treasury yield dropped below 5%, primarily driven by falling energy price and inflation concerns. The yield on 10-year Treasuries declined three basis points to 4.99%. Lower yields are typically supportive for US stocks.
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