{"id":71922,"date":"2026-09-17T16:38:13","date_gmt":"2026-09-17T20:38:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-rebound-as-easing-oil-prices-and-bond-yields-offset-fed-rate-hike\/71922\/"},"modified":"2026-09-17T16:38:13","modified_gmt":"2026-09-17T20:38:13","slug":"markets-rebound-as-easing-oil-prices-and-bond-yields-offset-fed-rate-hike","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-rebound-as-easing-oil-prices-and-bond-yields-offset-fed-rate-hike\/71922\/","title":{"rendered":"Markets Rebound as Easing Oil Prices and Bond Yields Offset Fed Rate Hike"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Major U.S. indices surged<\/strong>, with the <strong>Nasdaq 100 climbing 1.7%<\/strong> and the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> gaining 1.1%<\/strong>, marking its strongest daily advance in six weeks.<\/li>\n<li><strong>The Federal Reserve implemented a 25-basis-point rate hike<\/strong>, its first since July 2023, raising the federal funds target range to <strong>3.75%\u20134.00%<\/strong>.<\/li>\n<li><strong>Falling energy costs provided relief<\/strong>, as Brent crude slipped toward <strong>$101 per barrel<\/strong>, easing immediate concerns over persistent, supply-driven inflation.<\/li>\n<li><strong>Semiconductor stocks spearheaded the rally<\/strong>, with the iShares Semiconductor ETF (<a href=\"\/stock\/SOXX\">SOXX<\/a>) jumping <strong>3.1%<\/strong> as investors rotated back into high-growth AI leaders.<\/li>\n<li><strong>Kroger (<a href=\"\/stock\/KR\">KR<\/a>) declared a $0.39 per share quarterly dividend<\/strong>, maintaining its long-term strategy of returning capital to shareholders with a <strong>2.6% annual yield<\/strong>.<\/li>\n<\/ul>\n<p>The U.S. stock and bond markets staged a powerful recovery on Thursday, effectively absorbing the <strong>Federal Reserve&#39;s<\/strong> first interest rate increase in over three years. Investors shifted their focus from the central bank&#39;s hawkish rhetoric to a significant retreat in <strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a><\/strong> and <strong>Treasury yields<\/strong>, which helped alleviate fears that inflation might spiral out of control. The <strong>S&amp;P 500 (<a href=\"\/stock\/.SPX\">.SPX<\/a>)<\/strong> closed <strong>1.16% higher at 7,639.31<\/strong>, while the <strong>Nasdaq 100 (<a href=\"\/stock\/.NDX\">.NDX<\/a>)<\/strong> led the charge with a <strong>1.7% gain<\/strong>, reclaiming much of the ground lost earlier in the week.<\/p>\n<p>The <strong>Federal Open Market Committee (FOMC)<\/strong> voted unanimously on Wednesday to raise the benchmark interest rate by a quarter percentage point. While Fed Chair <strong>Kevin Warsh<\/strong> signaled that further tightening may be necessary to reach the <strong>2% inflation target<\/strong>, market participants appeared relieved by the clarity of the central bank&#39;s stance. <em>This &quot;relief rally&quot; suggests that investors have now priced in the immediate path of monetary policy, allowing attention to return to corporate fundamentals and cooling energy markets.<\/em><\/p>\n<p>Technology and semiconductor companies were the primary beneficiaries of the shift in sentiment. Advanced Micro Devices (<a href=\"\/stock\/AMD\">AMD<\/a>) surged <strong>7%<\/strong>, and <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) rose <strong>2.5%<\/strong>, as the industry index outperformed the broader market. <em>The rebound in chips indicates a renewed appetite for risk among investors who had previously been sidelined by the uncertainty of the Fed&#39;s decision.<\/em><\/p>\n<p>In the consumer sector, <strong>Kroger (<a href=\"\/stock\/KR\">KR<\/a>)<\/strong> reinforced its commitment to shareholder returns by declaring a quarterly dividend of <strong>$0.39 per share<\/strong>. The dividend is payable on <strong>December 1, 2026<\/strong>, to stockholders of record as of <strong>November 16, 2026<\/strong>. This move continues the retailer&#39;s trend of consistent payout growth, which has maintained a <strong>13% compounded annual growth rate<\/strong> since 2006, even as the company navigates a shifting retail landscape and inflationary pressures.<\/p>\n<p>The bond market also saw a notable reversal, with the <strong>10-year Treasury yield<\/strong> dropping to approximately <strong>4.95%<\/strong>, snapping an eight-day winning streak. This decline in yields provided a much-needed tailwind for growth-oriented equities, which are particularly sensitive to borrowing costs. As the trading day concluded, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/.DJI\">.DJI<\/a>)<\/strong> finished up <strong>0.66% at 51,801.54<\/strong>, capping a session characterized by broad-based optimism across nearly all sectors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Major U.S. indices surged, with the Nasdaq 100 climbing 1.7% and the S&amp;P 500 gaining 1.1%, marking its [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[3710,3880,4222,4223,5027,6800,22440],"class_list":["post-71922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-federal-reserve","tag-fomc","tag-interest-rates","tag-inflation","tag-semiconductors","tag-nasdaq-100","tag-kroger-kr"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/71922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=71922"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/71922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=71922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=71922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=71922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}