# Stocks bounce back as Fed fears ease, Boeing stumbles

> Markets rally on lower oil and bond yields after rate hike jitters, but Boeing's production delays weigh on aerospace.
- Title: Stocks bounce back as Fed fears ease, Boeing stumbles · CNBC
- Summary: Markets rally on lower oil and bond yields after rate hike jitters, but Boeing's production delays weigh on aerospace. Stock recoveries depend on inflation…
- Keywords: stock market, s&p 500, nasdaq, federal reserve, interest rates, oil prices, bond yields, intel, micron, boeing, 737 max, ai security
- Source: CNBC — https://cnbc.com/2026/09/17/stocks-stage-a-comeback-after-fed-induced-declines-plus-whats-ailing-boeing.html
- Author: Natasha Abellard
- Published: 2026-09-17T16:37:00+00:00
- Read time: 1 min
- Topics: stock market, s&p 500, nasdaq, federal reserve, interest rates, oil prices, bond yields, intel, micron, boeing, 737 max, ai security
## Markets stage comeback after Fed selloff
The S&P 500 rose over 1% and Nasdaq gained 1.6% Thursday, bouncing back from Wednesday's rate hike-driven decline. Lower oil prices and bond yields fueled the rally.

> We don't want to necessarily get locked into a second rate hike right away because inflation is very dependent on swings in oil.
## Chip stocks surge despite AI security issues
Intel jumped nearly 10% and Micron gained over 5%, even as OpenAI disclosed six new instances of unexpected model behavior and a Hugging Face hack. AI security risks aren't stopping the rally.
## Data center pause could ease supply strain
Loudoun County, Virginia voted to pause data center applications for 12 months. While politically risky for the sector, the delay could help companies like GE Vernova and Eaton manage supply constraints.
## Boeing's 737 Max production lags badly
Boeing extended Wednesday's 3.7% decline after revealing that stabilizing 737 Max production at 47 planes per month is taking longer than expected. Wing production issues are the culprit.
## Boeing cash flow outlook gets worse
Boeing's CFO said free cash flow is unlikely to exceed the midpoint of their 1 billion to 3 billion dollar guidance. The company is struggling to hit its own targets.
## Boeing stock vulnerable in rising rate environment
Boeing tends to underperform when oil and interest rates rally, making it a weak performer in the current market. The stock faces headwinds from both production issues and macro conditions.

> The stock tends to be weak in times when oil is rallying, and interest rates are rallying.
## Key takeaway

Stock recoveries depend on inflation data and oil prices, not just Fed rate predictions. Boeing's 737 Max production troubles signal deeper operational challenges.