US stocks rose on Thursday as Treasuries rallied and oil prices fell for a second day in a row.
The S&P 500 Index closed up 1.1%, notching its first daily advance this week. The Nasdaq 100 climbed 1.7%. Both indexes had their best day in more than six weeks, bouncing back from Wednesday selloff after the Federal Reserve raised interest rates for the first time since 2023. The latest dot plot showed 16 of 18 Fed officials had penciled in another rate hike this year, and Chairman Kevin Warsh delivered a hawkish speech after the decision.
Despite the gains, "investors should be very wary about seeing this as an 'all clear' sign for the stock market," Matt Maley, chief market strategist at Miller Tabak & Co., wrote in a note. "There is a difference between having investors 'expect' a negative development and having them already 'price' it into the market."
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| Brent crude prices fell 1.6% to $104 a barrel. Treasury yields fell across the curve, with the 10-year yield down to 4.94% after climbing as high as 5.02% on Wednesday following the Fed decision. Tech stocks were broadly higher, with the iShares Semiconductor ETF up 3.4%. Marvell Technology Inc., Intel Corp. and Advanced Micro Devices Inc. all gained at least 4.8%. The tech-heavy Nasdaq 100 is down 4% from its early June peak, but is still up nearly 17% in 2026 and on pace for a fourth consecutive year of double-digit gains. Ed Yardeni, who cut his year-end target on the S&P 500 to 7,900 from 8,400 this week, said his main concern is oil prices staying higher for longer amid the war in Iran. That increases "the odds that some of the inflationary pressures from energy will spill over to core prices," Yardeni said on Bloomberg Television. ALSO READ: Buy, Sell Or Hold: BHEL, Hyundai Motor, Coforge, HDFC Bank, Raymond And BEL — Ask Profit The likelihood of another US rate increase this year as well as the state of the bond market is also making Yardeni more cautious. "My friends the bond vigilantes have kind of gone wild around the world," he said. Stocks can weather two or three hikes this year, Seema Shah, chief global strategist at Principal Asset Management, said in an interview. "There'll be some wobbles and questions" from investors, but strong earnings will help lift the market through the cycle, she said. And while stocks often fall in September - historically the worst month on the calendar for equities - Citadel Securities' Scott Rubner is growing "increasingly constructive on what comes next" as markets head into the final quarter of the year. "That does not mean we think the September weakness is finished," the firm's head of equity and derivatives strategy wrote to clients. "We continue to think equities can trade lower over the next two weeks. But the setup is beginning to change." |
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