Wall Street Rebounds as Falling Oil Prices Ease Inflation Fears a Day After Fed Rate Hike

Wall Street Rebounds as Falling Oil Prices Ease Inflation Fears a Day After Fed Rate Hike

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U.S. stocks bounced back on Thursday, recovering from the previous session’s sell-off as a drop in oil prices reassured investors that inflation can stay contained even after the Federal Reserve raised interest rates for the first time since 2023. All three major indexes closed higher, with technology and chip stocks leading the advance. The rally came one day after the central bank lifted its benchmark rate and signaled a cautious path ahead, and traders appeared relieved that cheaper energy could take some pressure off consumer prices.

What Moved Markets

The Nasdaq Composite led the gains, climbing 439.88 points, or 1.69%, to close at 26,418.30 as technology and semiconductor names surged. The S&P 500 added 85.95 points, or 1.14%, to finish at 7,637.76. The Dow Jones Industrial Average rose 317.95 points, or 0.62%, to end at 51,779.85.

The driving force was a pullback in oil prices, which helped calm worries about inflation just as the Fed begins a new tightening cycle. On Wednesday, the central bank raised its key rate by a quarter point to a target range of 3.75% to 4%, its f...