Dow rallied as Fed raised rates; Nvidia neared entry

Dow Rallies As Fed Lifts Rates

U.S. stocks rallied broadly on Thursday, September 17, as the Dow Jones Industrial Average gained 322.16 points to close at 51,784.06. The Nasdaq Composite rose 419.08 points, or 1.61 percent, to 26,397.50, while the S&P 500 added 82.40 points to reach 7,634.21.

Investors looked past the Federal Reserve's first interest rate increase in three years, focusing instead on falling oil prices and easing Treasury yields during Thursday trading.

The Federal Reserve raised its benchmark target range by 25 basis points to 3.75 percent to 4.00 percent on September 16. All 18 officials voted for the move, and 16 expect at least one more rate hike before the end of 2026.

Financial markets were pricing a 57.6 percent probability of another Federal Reserve rate increase in October as of Friday, according to Reuters and closely watched market analysts.

Friday's session ended mixed, with the Dow Jones Industrial Average slipping 65.79 points to 51,712.25 while the Nasdaq Composite added 50.19 points to close at 26,468.49.

Oil Dips As Treasury Yields Pull Back

Brent crude oil fell 2.73 percent to $102.94 a barrel on Thursday, while West Texas Intermediate dropped 1.92 percent to $100.47 during the same session in New York.

Brent crude had climbed to $109 a barrel earlier because of heightened political tension in the broader Middle East region. Additional crude oil from Saudi Arabia helped ease supply fears, and the price later retreated to $102.94 per barrel by Thursday.

Sustained oil prices above the $100 per barrel mark can complicate the inflation outlook overall and pressure the Federal Reserve's policy path in the coming months.

The benchmark 10-year Treasury yield briefly climbed above 5 percent after the Federal Reserve decision, reaching its highest level since 2023. It later settled at 4.947 percent, down 0.057 percentage points, a decline that benefits high-growth technology companies and their valuations.

Lower long-term rates typically support technology stocks, which helps explain why the Nasdaq led the Dow Jones and the S&P 500 during Thursday's broad market rally.

Technology Stocks Rebound, Led By Nvidia

Nvidia reported $96.22 billion in revenue and earnings of $2.22 per share in its most recent quarter, beating consensus estimates. The company's next quarterly results are expected between November 17 and November 25, a key catalyst for the AI trade.

Intel gained more than 8 percent on Thursday, while Marvell Technology added about 4.5 percent and Lam Research rose roughly 4 percent in the broad tech rebound.

Netflix shares dropped nearly 4 percent on Friday after Wells Fargo downgraded the streaming stock from Overweight to Underweight rating. The bank also lowered its price target from $80 to $57, citing weak viewing engagement and persistent content pipeline problems.

Warren Buffett, 96, retired as Berkshire Hathaway chairman and became chairman emeritus, while his son Howard Buffett now leads the board and Greg Abel serves as CEO.

A planned meeting between President Donald Trump and President Xi Jinping will focus on artificial intelligence, semiconductor restrictions, trade deals and the Chinese yuan, drawing investor attention.