Home / Business and Economy / Tech Stocks Lead Wall Street Rebound
Tech Stocks Lead Wall Street Rebound
18 Sep
Summary
- US equities rebounded strongly on Thursday, September 18.
- Tech stocks, including Nvidia, Intel, and Qualcomm, fueled the rally.
- Falling oil prices and cooling bond yields also boosted market sentiment.
US equities staged a notable recovery on Thursday, September 18, bouncing back from a Fed-induced sell-off. The Dow Jones gained 300 points, regaining half of its previous day's substantial drop. The S&P 500 and Nasdaq indices were particularly strong performers, climbing 1.1% and 1.7% respectively.
The rebound was significantly propelled by tech stocks. Nvidia shares saw a 2.5% increase following CEO Jensen Huang's optimistic outlook on chip sales for the upcoming year. Other AI-linked companies such as Intel, Qualcomm, and AMD also experienced gains ranging from 3% to 8%, boosting the tech-heavy indices.
Market sentiment was further bolstered by a decline in crude oil prices and cooling bond yields. Oil prices dropped for the third consecutive day as supply concerns eased, partly due to reports of China urging Iran to de-escalate tensions in Saudi Arabia. However, concerns about potential supply disruptions remain.
Bond yields globally cooled as traders digested the Fed's recent rate hike, viewing it as a sign of the Fed's commitment to fighting inflation. The US 10-year yield decreased by 10 basis points from recent highs. In the UK, bond yields also eased after the Bank of England maintained its interest rates and abandoned plans for longer-dated bond sales.
Attention now turns to the Bank of Japan's upcoming announcement. While a 25 basis points rate hike is largely anticipated, any deviation from expectations in Governor Kazuo Ueda's commentary could lead to further weakening of the Yen against the US Dollar.
