Stocks and Bonds Rally as Falling Oil Eases Inflation Concerns – US Market Wrap
Stocks and bonds advanced as declining oil prices supported hopes that inflation can remain contained, a day after the Federal Reserve raised interest rates for the first time since 2023.
US equities posted their strongest gain in six weeks, with the S&P 500 rising 1.1% and the Nasdaq 100 adding 1.7%. Semiconductor stocks outperformed, with a key industry index climbing 3.1%. The 10-year Treasury yield retreated from its highest level since 2007, snapping an eight-session run of increases. The dollar was little changed, while gold advanced and Brent crude settled below $105 a barrel.
In the UK, the Bank of England provided some relief to the gilt market by overhauling its approach to selling bonds accumulated on its balance sheet over the previous decade. Attention now turns to the Bank of Japan, which is expected to raise rates on Friday amid persistent inflation risks, marking its most closely spaced rate increases since 1990.
