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Market Update
Source: Newsmaker.id
US stock markets closed higher on Thursday (Sept. 17), erasing losses from the previous two sessions. The S&P 500 rose 1.1%, the Dow Jones gained 316 points, and the Nasdaq climbed 1.7%. The recovery was supported by a drop in oil prices, which helped ease Treasury bond yields and improved sentiment toward stocks. (Trading Economics)
Oil and fuel prices pared some of their earlier gains after Saudi Arabia signaled progress in restoring capacity at the East-West pipeline. This development alleviated supply concerns and eased some wholesale energy inflation pressures. Lower yields also provided room for recovery among companies sensitive to financing costs.
Shares of major technology companies and data center operators underpinned the market's gains. Alphabet rose 1.3%, Microsoft gained 1.5%, Meta added 1.3%, and Amazon climbed 2.1%. Oracle posted a larger gain of 5.1% amid improving sentiment toward the sector.
Semiconductor manufacturers also saw sharp gains. Nvidia rose 2.5%, Micron gained 5.5%, AMD surged 6.4%, and Intel jumped 7.7%. These gains extended a recovery following earlier-week concerns regarding artificial intelligence (AI) safety, which had cast doubt on the outlook for AI capital spending.
Despite the market rebound, the Federal Reserve's policy trajectory remains a key focus. The Fed raised interest rates by 25 basis points on Wednesday, with FOMC officials projecting further hikes this year. The rally has not been uniform, however, with the financial sector generally seeing limited movement.
According to Newsmaker analysis, the Wall Street rally reflects investor relief over easing energy and yield pressures, particularly for interest-rate-sensitive technology stocks. However, the sustainability of these gains still hinges on the recovery of oil supplies and inflation trends. If energy prices continue to fall, pressure on corporate costs and stock valuations could ease. Conversely, fresh supply disruptions that drive oil prices back up could reinforce expectations of Federal Reserve tightening and cap the rally.
Source: Newsmaker.id