Markets bounce back after Fed clarity

Stocks jumped Thursday after the Federal Reserve raised rates for the first time since 2023, removing uncertainty that had weighed on Wednesday's trading.

Three major indexes post solid gains

The Dow Jones rose 0.6% to 51,778, the S&P 500 gained 1.1% to 7,637, and the Nasdaq Composite jumped 1.7% to 26,418.

Fed signals inflation fight continues

Fed Chair Kevin Warsh said inflation remains too high and the quarter-point rate increase will support a faster return to the 2 percent inflation target.

“The plain fact is that inflation is too high and has been for too long.”

Uncertainty fades, rally resumes

With the rate hike decision behind them, investors now have the clarity needed to resume buying stocks, according to Edwards Asset Management's chief investment officer.

“Now that we are past this rate hike, stocks can move on, as uncertainty has faded.”

Treasury yields and oil prices fall

The 2-year Treasury yield dropped 5.4 basis points to 4.673% and the 10-year fell 6.8 basis points to 4.936%. West Texas Intermediate crude slipped 0.5% to $101.91 per barrel.

Nvidia leads tech sector higher

Nvidia gained 2.5% as CEO Jensen Huang said chip sales are expected to double next year on strong AI demand, despite recent safety concerns from industry leaders.

Ciena sees explosive AI growth ahead

Ciena, which makes high-speed networking equipment, expects revenue to grow roughly 30% annually over the next three years, driven by surging AI orders and new customers.

“Ciena's rapidly expanding AI networking opportunity has led to surging orders and backlog, new markets, and new customers.”

Generac soars on Amazon deal

Generac jumped 18.3% after signing a long-term supply agreement with Amazon worth up to $8 billion in backup generators through 2033, plus warrant rights to buy 1.7 million shares.

Industrial stocks gain on growth

Caterpillar rose 2.0% and Deere jumped 2.4% as industrial stocks benefited from economic optimism and strong order books across the sector.