Markets opened higher on Thursday as easing bond yields and falling oil prices lifted investor sentiment following the Federal Reserve’s first interest rate increase since 2023.
The Federal Reserve raised interest rates by 25 basis points on Wednesday, a move that markets had widely anticipated heading into the central bank’s policy decision.
Fed officials now see a second rate hike on the horizon for the remainder of the year, adding a layer of caution to an otherwise broadly positive market open.
The 10-year Treasury yield fell by 5 basis points on Thursday, hovering near 4.96% as bond markets absorbed the Fed’s decision and forward guidance.
Brent crude futures dropped to $102 per barrel while West Texas Intermediate traded near $100, with the decline in oil prices offering relief to equity investors.
Technology stocks led the broader market higher, with the Technology Select Sector SPDR Fund (NASDAQ: XLK) gaining as chip heavyweight NVIDIA (NASDAQ: NVDA) surged more than 2% in early trading.
E-commerce giant Amazon (NASDAQ: AMZN) also rallied in the opening minutes of the session, while software maker Microsoft (NASDAQ: MSFT) added to gains across the tech sector.
Bitcoin (BTC-USD) climbed roughly 1% to hold above $76,000, with the cryptocurrency maintaining its footing as risk appetite returned to markets.
Gold (GC=F) held steady above $4,400, continuing to attract investors seeking a hedge against ongoing uncertainty around monetary policy and global growth.
Among other closely watched names, Nebius (NASDAQ: NBIS), Arm Holdings (NASDAQ: ARM), and CoreWeave (NASDAQ: CRWV) were among the most viewed stocks by investors tracking Thursday’s session.
The combination of a widely anticipated Fed move, easing crude oil prices, and a softer Treasury yield curve provided enough momentum to push equities into positive territory at the open.
Traders will continue monitoring Fed commentary throughout the day for clearer signals on the timing and pace of any additional rate increases before year-end.
