US stocks rebounded on Thursday as Treasury yields and oil prices fell, while strength in technology stocks helped markets recover from the previous session’s post-Fed losses.
The Dow Jones Industrial Average gained 316.14 points, or 0.61%, to 51,778.04. The S&P 500 rose 1.14% to 7,637.76, while the Nasdaq Composite jumped 1.69% to 26,418.30.
Technology led the advance, with Nvidia and Amazon gaining more than 2% each and Microsoft rising 1.5%. Qualcomm added 2%, while Intel jumped 7%.
Bond yields retreated after moving above 5% following Wednesday’s Fed rate hike. The US 10-year Treasury yield fell more than 7 basis points to around 4.93%, easing pressure on equities.
Oil prices also declined as concerns over supply disruptions eased. WTI fell 0.51% to US$101.91 a barrel, while Brent dropped 0.95% to US$104.82.
The rebound followed the Federal Reserve’s decision to raise rates by 25 basis points, with policymakers signalling another increase could come this year as inflation remains elevated.
Australian Market Outlook
Australian shares are set to rally on Friday, with S&P/ASX 200 futures up 44 points, or 0.5%, to 8,815.
Lower global bond yields and easing oil prices should provide support after recent volatility, while the strong overnight performance in US technology stocks could also improve broader sentiment.
Investors will continue to monitor oil prices and the Iran war, along with the outlook for further Federal Reserve tightening after this week’s first US rate increase in three years.
