Nasdaq Leads Rebound as Fed Jitters Fade

Wall Street bounced hard in the previous session, with the Nasdaq Composite up 1.69% to 26,418.30, the S&P 500 rising 1.14% to 7,637.74 and the Dow Jones Industrial Average gaining 0.62% to 51,779.85. The move followed Wednesday's selloff after the Federal Reserve lifted rates for the first time since 2023 and signaled more tightening could still be coming. Reuters via Kitco and Zacks said the rally was broad, but it was tech that did the heavy lifting.

That was a clean reversal from the prior session, when the Dow lost 631.21 points, the S&P 500 fell 0.5% and the Nasdaq was essentially flat. The market's message is straightforward: investors are still willing to buy risk if yields and energy prices stop climbing at the same time.

Semis and Mega,Cap Tech Catch a Bid

The strongest action was in the rate,sensitive parts of the market. Reuters reported that Nvidia, Alphabet, Tesla, Amazon and Eli Lilly all rose at least 1%, while chip names including Micron, AMD and Intel advanced 5% or more. That rebound makes sense after the group had been hit hardest in the run,up to the Fed decision. CoinDesk also noted that the Nasdaq's 1.7% gain helped pull risk assets higher across the board.

One stock that stood out was Arm Holdings, which had already been firm after management expressed confidence in its AI,chip revenue target, according to market mover coverage from AInvest. The bigger point for traders is that the AI trade is not dead, but it is still tightly linked to the direction of real yields.

Yields Back Off, But the Fed Stays Hawkish

Bond yields finally gave equities some breathing room. Reuters said the 10,year Treasury yield fell 6.5 basis points to 4.94%, while the two,year dropped to 4.67%. That came after the 10,year had finished Wednesday above 5%, a level that had rattled growth stocks and forced a broad de,risking. CNBC and Reuters both framed the move as a relief rally after the Fed's first hike in more than three years.

The policy message itself was still hawkish. The Fed raised its benchmark rate by 25 basis points to 3.75% to 4.00%, and officials signaled the door remains open to more tightening this year. Reuters said market pricing implied a 53.1% chance of another quarter,point hike in October, up sharply from 27.2% a week earlier. That keeps the front end of the curve very much in play.

Crude Pulls Back After Saudi Supply News

Oil was the other big swing factor. Brent settled at $105.83 a barrel and WTI at $102.43 in the prior session, with WTI down 3.2% and Brent off 2.7%, according to Reuters. Traders sold crude after reports that Saudi Arabia had found alternate export routes through Oman, easing immediate fears of a prolonged supply disruption. Reuters via Kitco said crude even touched a one,week low before paring losses.

That matters because oil has become the market's inflation barometer. When crude fades, the whole rates narrative calms down with it. If Saudi export workarounds hold and Middle East disruption risks do not intensify again, equities should have a better chance of stabilizing, especially in the rate,sensitive parts of the index.

Gold Loses Its Morning Bid, Crypto Stays Resilient

Gold was volatile around the Fed, but the metal struggled once yields and the dollar firmed. CNBC said spot gold fell 1.2% to $4,240.10 an ounce after earlier touching $4,365.57, though futures settled higher at $4,387.50. That kind of intraday reversal tells you gold is still being driven more by rates than by safe,haven demand right now. CNBC reported that the stronger dollar was the key headwind.

Crypto held up better. Bitcoin rose about 0.5% in CoinDesk's coverage, while Schwab's market update showed BTC around $76,775 and Ethereum near $2,429.85 earlier in the session. CoinDesk also pointed to the SEC's new "innovation exemption" as a possible tailwind for tokenized markets. The takeaway: crypto is still trading like a high,beta risk asset, but it did not crack the way some of the more rate,sensitive equity groups did.

Data and Geopolitics Keep the Macro Pressure On

Thursday's session also had a steady stream of macro and geopolitical inputs. Reuters said weekly U.S. jobless claims dipped to near 1969 lows, a reminder that the labor market is still resilient enough to keep the Fed cautious. The same Reuters report said markets were also watching ongoing Middle East tensions, which continue to feed into energy prices and inflation expectations. Reuters via Kitco linked the crude move directly to Saudi shipment workarounds through Oman.

That combination is why this market still feels fragile. Strong labor data helps the economy, but it also keeps rate,cut hopes pinned down. Meanwhile, geopolitical risk can spark another oil spike at any time, and that would immediately feed back into yields and equity multiples.

What Traders Should Watch Today

Any follow,through in the 10,year yield after Thursday's drop to 4.94%. If it snaps back above 5%, growth stocks could give back part of yesterday's rebound.
WTI holding above $100 and Brent staying near the low $100s. A fresh oil bid would quickly revive the inflation trade.
More Fed commentary or fed,funds pricing that confirms whether traders are leaning toward another October hike.
Large,cap tech and semis for confirmation that Wednesday's post,Fed selloff really was a one,day shakeout.
Any new Middle East headlines, especially anything that affects Saudi export flows or shipping routes.
Crypto reaction to the SEC's innovation exemption and whether Bitcoin can keep pace above the mid,$70,000s.