U.S. stocks rebounded sharply Thursday, reversing part of Wednesday’s Federal Reserve-driven selloff as falling oil prices and easing Treasury yields gave Wall Street some breathing room.
The Nasdaq Composite climbed about 1.25%, while the S&P 500 gained 0.94% and the Dow Jones Industrial Average advanced 0.59% in morning trading. Nvidia and Amazon rose nearly 2% each as technology stocks returned to the front of the rally.
The turnaround comes just one day after the Fed raised interest rates for the first time since 2023, initially sending stocks lower as investors confronted the possibility of additional tightening.
Oil Falls Below $103 as Stocks Recover
The biggest change Thursday was outside the stock market.
Brent crude dropped nearly 3% to around $102.90 per barrel, while West Texas Intermediate declined about 1.8% to $100.62. The retreat reduced some of the inflation pressure that has rattled markets throughout September.
That relationship has become increasingly important. Coinpaper recently tracked a similar stock market rebound when falling crude prices helped stocks overcome hotter-than-expected inflation.
Treasury yields also eased Thursday, providing another boost for growth stocks. High bond yields have been one of Wall Street’s biggest concerns, particularly after the 10-year Treasury recently crossed 5%.
Investors have already been pulling back from stocks as government debt offers increasingly competitive returns.
Wall Street Reverses Wednesday’s Fed Selloff
Thursday’s rally is particularly notable because it comes immediately after a very different reaction to the Fed.
The central bank unanimously increased its benchmark rate by 25 basis points to 3.75%–4.00% on Wednesday. The Dow subsequently dropped 1.2%, while the S&P 500 lost 0.4%.
Coinpaper’s coverage of the post-Fed selloff showed that investors were less concerned about the widely expected hike itself than the possibility of further increases.
That risk has not disappeared.
Fed projections indicate most policymakers expect at least one additional rate increase before the end of 2026. Markets therefore remain caught between easing energy prices and a central bank that has returned to tightening monetary policy.
Nvidia and Amazon Lead Tech Higher
Technology stocks were among Thursday’s strongest performers, with Nvidia and Amazon gaining nearly 2%.
Amazon also attracted attention after signing a long-term agreement with Generac to supply backup generators for its data centers. Initial deliveries are expected to total approximately $2.4 billion in 2027 and 2028, while purchases tied to the broader agreement could eventually reach $8 billion.
Generac shares surged following the announcement, turning power infrastructure into another extension of the AI data-center investment boom.
For the broader market, however, oil and bonds remain the bigger signals.
The recent rise in Treasury yields has raised the valuation hurdle for expensive technology stocks. Thursday’s decline in yields temporarily reverses that pressure.
