Wall Street climbs as easing oil prices offer reprieve after Fed rate hike
Published Thu, Sep 17, 2026 · 10:52 PM
[NEW YORK] The major US stock indexes jumped on Thursday (Sep 17) as a pullback in oil prices boosted sentiment, with the Federal Reserve’s first rate hike under chair Kevin Warsh reassuring investors of the central bank’s commitment to tackling inflation.
The policy decision addressed a chronic source of anxiety, allowing investors to return to favourites. Technology shares gained, with Nvidia and Amazon rising nearly 2 per cent each.
The gains will be crucial for investors in the second half of September, historically a weak month for equities. The benchmark S&P 500 has lost 1.7 per cent so far this month.
“Although the argument that energy prices are elevated because of a temporary disruption in the Middle East may be true, inflation has been above target for over five years,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Warsh “threaded the needle very well”, he added.
At 9.38 am US Eastern Time, the Dow Jones Industrial Average rose 316.08 points, or 0.59 per cent, to 51,763.46; the S&P 500 added 71.28 points, or 0.94 per cent, to 7,623.09; and the Nasdaq Composite gained 321.49 points, or 1.25 per cent, to 26,302.28.
The CBOE Volatility Index, Wall Street’s fear gauge, fell 2.01 points to 15.70.
“I think the Fed is likely to maintain a light touch going forward. It doesn’t feel like we’ve entered the type of rate-hiking cycle we saw in 2022 and 2023,” noted Kim Forrest, chief investment officer at Bokeh Capital Partners.
However, the Fed warned that more hikes may be needed in the coming months to control prices. Uncertainty over how high interest rates could ultimately rise is likely to keep stocks and bonds volatile in the weeks ahead.
Traders see a near-49 per cent chance of another increase when the central bank meets next, in October, compared with about 44 per cent a day ago, according to CME’s FedWatch.
“History is clear that once the Fed begins raising rates, they do it multiple times; but the pattern is less clear about whether they will raise rates at consecutive meetings or leave rates unchanged at some of the meetings in between,” Zaccarelli said.
The yield on the benchmark 10-year US Treasury also slipped, taking some pressure off equities. High yields on risk-free US Treasuries typically dampen the appeal of stocks.
All 11 major S&P 500 sectors were trading higher, with utilities leading gains with a 1 per cent jump.
Oil slides, Middle East risks linger
Meanwhile, oil prices dropped for the second consecutive day, with Brent crude futures down nearly 3 per cent at US$102.90. US West Texas Intermediate crude futures fell 1.8 per cent to US$100.62.
Crypto-linked stocks rose after the US securities regulator unveiled a five-year exemption for tokenised stock trading. Robinhood and Circle Internet Group rose about 3.5 per cent each, while Coinbase advanced 1.2 per cent.
Shares of neocloud firms gained, with Nebius and Iren up about 1.4 per cent each. CoreWeave fell 2.9 per cent after it announced plans to raise capital via stock and convertible bond offerings.
Fluence Energy tumbled more than 16 per cent after lowering its revenue forecast for fiscal year 2026.
Advancing issues outnumbered decliners by a 4.17-to-1 ratio on the New York Stock Exchange and by a 3.5-to-1 ratio on the Nasdaq.
The S&P 500 posted three new 52-week highs and three new lows, while the Nasdaq Composite recorded 21 new highs and 28 new lows. REUTERS
