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Stocks and bonds rally after Fed hikes rates and oil prices fall
NBC News • • business
Key Points:
- U.S. stock indexes surged Thursday morning following the Federal Reserve's interest rate hike, with the S&P 500 up 1.2%, Nasdaq Composite rising 1.6%, and Dow Jones Industrial Average increasing 0.9%.
- Bond prices rallied as yields fell, with the 10-year Treasury yield dropping to 4.96% and the 30-year yield declining to 5.31%, supported by the Bank of England's decision not to raise rates or sell longer-dated bonds.
- Positive economic signals came from a decline in jobless claims to the lowest level since July, although the data may be influenced by a recent short holiday week.
- Oil prices fell for a second day, with U.S. crude briefly dropping below $100 per barrel amid reports of potential discussions on the Iran war and progress in restoring Saudi Arabia’s East-West pipeline.
- Despite market optimism, Fed officials indicated further rate hikes are likely before year-end and possibly early next year, while the Bank of Japan is also expected to raise rates, potentially impacting global bond markets.
