17.09.202620:08:40UTC+00US Stocks Rebound on Lower Oil

US stock indices closed higher on Thursday, reversing losses from the previous two sessions as a pullback in oil prices helped ease Treasury yields. The S&P 500 gained 1.1%, the Dow Jones Industrial Average rose 316 points, and the Nasdaq Composite advanced 1.7%.

Oil and fuel prices moderated after their recent surge, following signals from Saudi Arabia that it is making progress in restoring production capacity via its East–West pipeline. This development helped temper some of the recent upward pressure on wholesale energy costs.

Large, credit-sensitive hyperscalers advanced across the board: Alphabet rose 1.3%, Microsoft 1.5%, Meta 1.3%, Amazon 2.1%, and Oracle 5.1%. Semiconductor stocks also rallied sharply, extending their rebound after earlier concerns over AI safety had cast doubt on the outlook for AI-related capital expenditures. Nvidia climbed 2.5%, Micron 5.5%, AMD 6.4%, and Intel 7.7%.

On the policy front, the Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday. Projections from FOMC members indicated a broad consensus that at least one additional rate hike is likely this year. Financial stocks were mostly little changed.