US close: Stocks rebound after Fed rate hike as bond yields ease, oil falls

17th Sep 2026 23:33

(Sharecast News) - US stocks finished with strong gains on Thursday in the aftermath of the Federal Reserve's first rate hike in three years, with markets bolstered by falling bond yields and oil prices.

Stocks in the semiconductor sector were among the day's better performers, as sentiment recovered after a brutal sell-off over the past week, following concerns raised by prominent tech figures about AI advancing too rapidly.

The Dow rose 0.6%, rebounding after dropping to a three-month low on Wednesday ahead of the FOMC decision, with the VIX volatility index down nearly 13% on the day. The S&P 500 and Nasdaq, which hit six-week lows the previous session, bounced 1.1% and 1.7% respectively.

The Federal Reserve's decision to deliver a widely expected quarter‑point increase was still in focus on Thursday, with the central bank lifting the federal funds target range to 3.75% to 4%, and signalling that another move was likely before year‑end. Chairman Kevin Warsh said inflation "remains too high", underscoring the risk of further tightening.

Market participants were also keeping a keen eye on the relationship between Warsh and Donald Trump, who continued to push for lower rates after the FOMC's decision. "Interest rates in the United States should be 1%, or less, because we are the best credit in the world - by far," Trump said on social media.

US bonds rose on Thursday, with the 10-year Treasury yield down 5.7 basis points at 4.946%.

"Although yields initially rallied on a 'hawkish' Fed, there has been a relief rally for stocks and bonds on Thursday, as the uncertainty of what the Fed will do next is now out of the way," said Kathleen Brooks, research director at XTB.

"This suggests two things: 1) forward guidance, even in the form of a Dot Plot, is useful for anchoring the bond market; and 2) unless energy prices move materially higher from here, then inflation could stabilise."

Meanwhile, Brent crude finished down 1% at $104.82 a barrel, falling for the second straight session after hitting a four-month high earlier in the week. Oil eased following reports that Saudi Arabia would make additional crude cargoes available to Asian refiners through ship‑to‑ship transfers near Oman's Sohar port, easing recent supply‑disruption concerns.

In equity news, Intel, Micron Technology and Nvidia were providing a lift as investors flocked back to the chip sectors after recent falls.

HR platform Workday was also a high riser as speculation continued about a take-private offer. According to CNBC, progress is being made on financing for a bid.

On the macro front, initial jobless claims fell by 10,000 to 196,000 last week, better than expectations for an increase to 208,000 and in keeping with a recent run of low claim counts since hitting an almost 60-year low of 189,000 in mid July.

The Philadelphia Federal Reserve's manufacturing gauge slipped to 37.8 in September from 47.4 in August, though it comfortably beat expectations for 30.5, signalling continued growth in regional factory activity, albeit at a slower pace. New orders and shipments stayed elevated, while the employment measure softened but remained positive. Price pressures, on the other hand, picked up again after easing last month.

US building permits and housing starts both declined in August, according to the Census Bureau, offering a softer read on construction activity even as regional trends diverged. Building permits fell 2.7% month‑on‑month to an annualised print of 1.39m, below expectations for a reading of 1.41m, while housing starts slipped 2.6% to 1.275m, the lowest level since October 2025 and short of forecasts for 1.31m.

Finally, US pending home sales edged higher in August, according to the National Association of Realtors, but remained down sharply on an annualised basis. Contract signings rose 0.3% month‑on‑month, with gains in the South and West offset by declines in the Northeast and Midwest. Compared with a year earlier, however, pending sales were 4.7% lower, with all four major regions posting annual decreases.

Dow Jones - Risers

Intel Corp. (INTC) $108.80 6.15%

Caterpillar Inc. (CAT) $798.57 2.02%

Nike Inc. (NKE) $36.36 1.62%

Merck & Co. Inc. (MRK) $147.15 1.55%

Goldman Sachs Group Inc. (GS) $951.47 1.44%

3M Co. (MMM) $164.71 1.27%

Apple Inc. (AAPL) $337.00 1.12%

Johnson & Johnson (JNJ) $270.22 1.10%

Microsoft Corp. (MSFT) $497.75 0.85%

Amgen Inc. (AMGN) $379.78 0.75%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $242.85 -3.07%

Verizon Communications Inc. (VZ) $48.33 -2.87%

Boeing Co. (BA) $197.00 -2.46%

Dow Chemical Co. (DOW) $29.49 -1.96%

Walt Disney Co. (DIS) $105.35 -1.53%

Cisco Systems Inc. (CSCO) $110.24 -0.64%

American Express Co. (AXP) $311.17 -0.40%

Visa Inc. (V) $369.93 -0.27%

McDonald's Corp. (MCD) $248.48 -0.03%

Unitedhealth Group Inc. (UNH) $375.21 -0.01%

S&P 500 - Risers

Hewlett Packard Enterprise (HPE) $61.04 7.69%

Intel Corp. (INTC) $108.80 6.15%

HP Inc (HPQ) $34.66 5.99%

eBay Inc. (EBAY) $112.90 5.86%

Alexandria Real Estate Equities Inc. (ARE) $56.34 5.27%

Micron Technology Inc. (MU) $977.50 5.21%

Oracle Corp. (ORCL) $150.59 5.19%

Albemarle Corp. (ALB) $115.05 5.10%

Advanced Micro Devices Inc. (AMD) $545.09 4.78%

Illumina Inc. (ILMN) $245.18 4.66%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Coty Inc. Class A (COTY) $2.46 -6.46%

DENTSPLY Sirona Inc. (XRAY) $9.38 -6.10%

Comcast Corp. (CMCSA) $22.91 -5.82%

FMC Corp. (FMC) $10.20 -5.56%

DaVita Inc (DVA) $183.09 -5.56%

Huntington Bancshares Inc. (HBAN) $15.88 -4.28%

Charter Communications Inc. (CHTR) $133.37 -4.11%

PACCAR Inc. (PCAR) $117.36 -3.53%

Equity Residential (EQR) $63.66 -3.50%

Nasdaq 100 - Risers

Intel Corp. (INTC) $108.80 6.15%

eBay Inc. (EBAY) $112.90 5.86%

Micron Technology Inc. (MU) $977.50 5.21%

Workday, Inc. (WDAY) $199.28 5.09%

Illumina Inc. (ILMN) $245.18 4.66%

Incyte Corp. (INCY) $127.62 4.26%

Skyworks Solutions Inc. (SWKS) $91.32 4.02%

Synopsys Inc. (SNPS) $381.17 3.49%

Seagate Technology Plc (STX) $803.13 3.21%

Nvidia Corp. (NVDA) $219.34 2.74%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

T-Mobile Us, Inc. (TMUS) $166.45 -7.65%

DENTSPLY Sirona Inc. (XRAY) $9.38 -6.10%

Sirius XM Holdings Inc (SIRI) $27.74 -6.06%

Comcast Corp. (CMCSA) $22.91 -5.82%

Charter Communications Inc. (CHTR) $133.37 -4.11%

PACCAR Inc. (PCAR) $117.36 -3.53%

Gen Digital Inc. (GEN) $30.21 -3.02%

Intuit Inc. (INTU) $313.13 -3.01%

Wynn Resorts Ltd. (WYNN) $82.96 -2.90%