PiCK
U.S. Stocks Rebound a Day After Rate-Hike Shock as Tech Rally Lifts Nasdaq 1.69%
Summary
- Major U.S. stock indexes in New York rebounded across the board despite the shock from the rate hike.
- Buying centered on technology shares drove the advance, with the Nasdaq rising 1.69%.
- Nvidia, Amazon, Microsoft, Qualcomm, Intel, and SK Hynix ADRs were among the technology shares tied to artificial intelligence (AI) semiconductors that posted gains.
Forecast Trend Report by Period
Major U.S. stock indexes rebounded across the board, recovering a day after a rate-hike shock. Buying in technology shares led the gains.
On September 17, the Dow Jones Industrial Average rose 316.14 points, or 0.61%, to close at 51,778.04 on the New York Stock Exchange. The S&P 500 gained 1.14% to 7,637.76, while the Nasdaq Composite jumped 1.69% to 26,418.30.
The major indexes had tumbled a day earlier after the Federal Reserve raised its benchmark interest rate for the first time in three years and two months. On September 17, investor sentiment recovered as some uncertainty surrounding the rate increase eased.
The bond market also steadied as oil prices fell. West Texas Intermediate crude for October delivery slipped 0.51% to settle at $101.91 a barrel. Brent crude for November delivery fell 0.95% to $104.82 a barrel.
The yield on the 10-year U.S. Treasury note fell 9 basis points from the previous session to 4.93%. The policy-sensitive two-year yield dropped 3.8 basis points to 4.688%, while the 30-year yield fell 5 basis points to 5.296%.
Technology shares led the rebound. Nvidia and Amazon each gained more than 2%, while Microsoft rose 1.5%. AI chip-related stocks Qualcomm and Intel climbed about 2% and 7%, respectively. American depositary receipts of SK Hynix also rose 4.64%.
YM Lee
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