Nasdaq Jumps 326.94 Points as Fed Rate Hike to 3.75%-4% Lifts US Stocks at Open

Mumbai, Sept 17: US equities opened sharply higher on Thursday, with the technology-heavy Nasdaq Composite (^IXIC) leading gains as Treasury yields fell back below 5% and crude oil prices retreated following the Federal Reserve’s first interest rate increase in three years.  

At 9:37:12 AM EDT, the Nasdaq Composite stood at 26,305.36, up 326.94 points, or 1.26%. The S&P 500 rose 71.80 points, or 0.95%, to 7,623.61 at 9:37:56 AM EDT, while the Dow Jones Industrial Average added 311.55 points, or 0.61%, to 51,773.45 at 9:37:37 AM EDT.  

The Russell 2000 moved lower, slipping 11.47 points, or 0.40%, to 2,858.81. The opening advance followed a lower close on Wednesday, when the Dow Jones Industrial Average lost more than 630 points, or 1.2%, the S&P 500 slipped 0.5%, and the Nasdaq Composite ended marginally lower. 

Nasdaq Composite Opens 326.94 Points Higher as Treasury Yields Fall Below 5% Mark 

The Nasdaq Composite’s previous close was 25,978.42, with an opening print of 26,377.86. The index traded in a day’s range of 26,302.24 to 26,395.38, while its 52-week range stood at 20,690.25 to 27,190.21. Volume for the Nasdaq Composite was 2,184,712,000, against an average volume of 8,670,812,580. The S&P 500’s previous close was 7,551.81, with an open of 7,631.44, a day’s range of 7,622.56 to 7,646.60, a 52-week range of 6,316.91 to 7,816.70, and volume of 165,215,195. Its average volume stood at 5,167,496,129.  

Also Read: What Is the New York Stock Exchange (NYSE)?  

The Dow Jones Industrial Average’s previous close was 51,461.90, with an opening level of 51,882.53. The blue-chip index traded between 51,732.54 and 51,935.97, while its 52-week range was 45,057.28 to 54,744.33. Dow volume was 30,305,718, compared with an average volume of 493,032,419. The Russell 2000’s previous close was 2,870.29, with an open of 2,873.75, a day’s range of 2,832.37 to 2,887.82, and a 52-week range of 2,303.46 to 3,069.71.  

Russell 2000 volume was 0, while its average volume was 5,167,496,129. The broad advance came as the benchmark 10-year Treasury yield fell more than 5 basis points to 4.949%, moving back below the 5% mark after having risen above that level on Wednesday. 

Fed Rate Hike to 3.75%-4% Triggers Relief Rally Across Technology and Chip Shares 

The Federal Open Market Committee voted unanimously to raise the federal funds rate to a range of 3.75% to 4% on Wednesday. The increase was the first since 2023. New policy projections showed that 16 of 18 policymakers anticipated at least one more quarter-percentage-point increase by the end of the year, while only two expected rates to remain at current levels.  

Fed Chair Kevin Warsh told reporters that inflation remained too high, pointing to broad categories of products and services showing annualised price gains above 3% on both a six-month and 12-month basis. He stressed that the central bank must ensure credit and financial conditions remain consistent over time with its mandate and prevent relative price changes in some sectors from broadening into general inflation. The Fed’s statement dropped earlier language that had linked stubbornly firm inflation partly to supply shocks driven by price increases in certain sectors, including energy. Instead, the September statement described current price growth as elevated.  

President Donald Trump said he still had confidence in Fed Chair Kevin Warsh, but called for lower interest rates, arguing that US borrowing costs should be 1% or less. Trump said he had spoken with Warsh ahead of the meeting and told him he might as well vote with the board. Market-implied pricing suggested a 49% to 53.1% likelihood of another quarter-point increase at the Fed’s late-October meeting, and an 86% likelihood of at least one quarter-point increase at its December meeting, which comes after the US midterm elections. 

Ten-Year Treasury Yield Drops to 4.949% While Thirty-Year Falls to 5.35% 

The 30-year Treasury yield declined 2 basis points to 5.35%, while the 2-year yield, which is closely tied to the Fed’s rate outlook, slipped 1 basis point to 4.715%. Earlier in the week, the 10-year yield had touched its highest level in almost two decades. In the immediate aftermath of the Fed decision, the 10-year yield had been little changed at 5.002%, the 30-year yield was flat at 5.348%, and the 2-year yield slipped 1 basis point to 4.715%.  

The decline in yields provided a favourable backdrop for technology and growth-oriented sectors, which are generally more sensitive to changes in borrowing costs. The Dow’s opening level of 51,882.53 and the S&P 500’s open of 7,631.44 reflected the improved risk appetite. The Russell 2000’s slip to 2,858.81 highlighted the uneven impact of higher rates, with rate-sensitive small-cap stocks facing pressure while large-cap technology and chip shares attracted support. 

Brent Crude Falls 1.42% to $104.33 as Saudi Supply Fears Ease 

Oil prices eased, extending losses as concerns about supply disruptions linked to Saudi Arabia’s East-West pipeline faded. Brent crude futures fell $1.50, or 1.42%, to $104.33 a barrel, while US West Texas Intermediate futures declined $1.09, or 1.06%, to $101.34 a barrel. Both contracts had fallen by about $3 on Wednesday. Later prints showed Brent at $102.45 and WTI at $100.20. The easing in supply concerns followed reports that Saudi Arabia was making additional crude cargoes available to Asian refiners through ship-to-ship transfers near Oman’s Sohar port, helping offset some disruption caused by attacks on the East-West pipeline to the Red Sea. US Energy Secretary Chris Wright said the pipeline would be restored soon. The average price of gasoline in the US stood at about $4.44 per gallon, while diesel climbed to another record high of nearly $6.40. Regular gas prices had risen 28 cents over the past month and more than $1.20 in the last year. Diesel could hit $6.60 per gallon in a few days, surpassing the inflation-adjusted peak seen in 2022. 

Jobless Claims Fall to 196,000 While Housing Starts Drop 2.6% in August 

Initial jobless claims fell by 10,000 to a seasonally adjusted 196,000 for the week ending 12 September, below the 207,000 consensus estimate. Continuing claims, which run a week behind, totalled 1.73 million, down 39,000 from the prior week. Building permits in August totalled 1.394 million, off 2.7% from July and slightly below the 1.4 million estimate. Housing starts totalled 1.275 million, down 2.6% on a monthly basis and below the forecast of 1.3 million. 

Also Read: How to invest in US stocks 

Wireless bills jumped 5.9% from July to August, the largest single-month increase since the Bureau of Labor Statistics began tracking the category nearly two decades ago. The rise followed T-Mobile’s decision to retire over 1,000 older plans and shift customers to newer offerings at an added cost of as much as $6 per line per month, as well as AT&T’s increase of $10 to $20 on some older plans and a $1 monthly per-line fee increase.  

Analysts estimated that the steep price jump in wireless services contributed about 10 basis points to August’s 0.3% month-over-month rise in core consumer prices, helping cement expectations for the Fed’s 25 basis point hike. 

Nvidia Gains 1.77% and Marvell Technology Jumps 6.35% in Early Trade 

Technology and semiconductor stocks recorded broad gains in early trade, with several major chipmakers moving higher. Nvidia rose 1.77%, while Microsoft gained 0.62%, Amazon advanced 1.99%, and Tesla climbed 2.96%. Apple was marginally lower, slipping 0.09%. 

Semiconductor stocks also posted strong gains. Broadcom rose 2.47%, while Micron jumped 5.59% and AMD gained 3.53%. ASML advanced 1.49%, while Intel climbed 5.41%. Cisco also moved higher by 1.82%, and Lam Research gained 2.21%. 

Among other chip and hardware companies, Arm surged 5.89%, while Marvell Technology jumped 6.35%. Qualcomm gained 2.84%, Seagate Technology rose 3.06%, Western Digital advanced 2.14%, and Analog Devices added 1.73%. Texas Instruments and KLA also gained 1.72% and 1.94%, respectively. 

The broader technology sector showed mixed performance. Palantir fell 0.38%, while Palo Alto Networks declined 2.69% and CrowdStrike slipped 1.54%. Adobe dropped 1.89%, while Datadog, Cadence Design Systems and Synopsys gained 0.29%, 0.83% and 0.50%, respectively. 

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Large internet and communication companies also delivered mixed moves. Alphabet rose 0.89%, while Google gained 1.12% and Meta advanced 0.44%. Netflix edged down 0.09%, T-Mobile declined 1.06%, and AppLovin fell 0.66%. Warner Bros. Discovery gained 0.57%, while Booking Holdings slipped 0.95%. 

Consumer and travel stocks traded in different directions. Starbucks rose 0.59% and Marriott gained 0.76%, while Shopify fell 0.93% and Airbnb declined 0.29%. MercadoLibre slipped 0.53%, Walmart fell 0.53%, and Costco declined 0.27%. PDD added 0.20%, while PepsiCo and Mondelez gained 0.25% and 0.12%, respectively. 

Healthcare stocks mostly moved higher. AstraZeneca gained 1.20%, while Amgen rose 0.41%, Gilead advanced 0.81%, Intuitive Surgical added 0.20%, and Regeneron gained 0.66%. 

Industrial and other major stocks remained relatively mixed. CSX rose 0.23%, while Cintas declined 0.32%. Honeywell remained unchanged at 0.00%, AEP gained 0.65%, and Linde slipped 0.12%.

Dow Components Nvidia Rises 1.87% as Caterpillar Adds 3.18% in Opening Session 

Dow components traded mixed in the opening session, with technology and industrial stocks recording notable gains. Nvidia rose 1.87%, while Microsoft gained 1.03% and Cisco advanced 1.82%. IBM also added 1.01%, while Amazon climbed 1.99%. 

Industrial stocks also saw strong buying. Caterpillar jumped 3.18%, making it one of the strongest gainers among Dow components. Home Depot gained 1.44%, while American Express rose 0.93% and 3M added 0.60%. Travelers and McDonald’s advanced 0.32% and 0.23%, respectively. 

Financial stocks posted modest moves. JPMorgan rose 0.46%, while Visa slipped 0.20%. Goldman Sachs declined 0.80%, whereas American Express gained 0.93%. The insurance company Travelers moved 0.32% higher. 

Consumer and healthcare stocks remained mixed. Coca-Cola gained 0.44%, Procter & Gamble added 0.16%, and Johnson & Johnson rose 0.35%. Merck advanced 0.61% and UnitedHealth gained 0.51%. Walmart, however, fell 0.47%, while Boeing declined 0.24%. 

Among the weaker Dow components, Salesforce dropped 3.37%, recording the sharpest decline in the group. Chevron slipped 0.60%, Verizon fell 0.14%, and Boeing lost 0.24%. Disney moved in the opposite direction, gaining 0.30%. 

S&P 500 Technology Stocks Lead Early Gains 

The S&P 500 heatmap showed strong momentum across several semiconductor and technology stocks. Nvidia gained 1.77%, while Broadcom rose 2.44%, Micron jumped 5.59%, AMD advanced 3.57%, and Intel climbed 5.41%. Oracle also gained 4.33%, while Cisco rose 1.82%. 

Chip and hardware stocks recorded some of the strongest moves. SanDisk surged 6.02%, while Qualcomm gained 2.84%, Seagate advanced 3.06%, and Western Digital rose 2.14%. KLA added 1.94%, Lam Research gained 1.80%, and Applied Materials rose 1.55%. 

Other technology stocks showed mixed performance. Dell gained 1.17%, Arista Networks rose 2.50%, and Amphenol added 1.30%. On the downside, Palantir fell 0.97%, Palo Alto Networks declined 2.40%, and CrowdStrike slipped 1.24%. ADP also dropped 0.98%, while Uber fell 0.89%. 

Overall, the opening session showed strong gains across several semiconductor and industrial names, while Salesforce and selected technology stocks remained under pressure. 

Generac Holdings Surges 23.64% on Amazon Data Centre Generator Supply Deal 

Among individual stocks, Generac Holdings surged 23.64% to $216.49, gaining $41.40 after the generator maker announced a supply agreement with Amazon for data centre backup generators. Initial deliveries under the agreement are expected to total $2.4 billion between 2027 and 2028. 

The agreement also gives Amazon the right to purchase up to $340 million of Generac stock. The overall deal could be worth up to $8 billion, according to the announced terms. Generac traded a volume of 1.158 million shares, compared with its average volume of 1.058 million. The company had a market capitalisation of $12.774 billion and a price-to-earnings ratio of 40.20. 

Generac’s 52-week change stood at -4.85%, with the stock trading within a 52-week range of $134.80 to $296.44. 

Vicor Gains 13.10% as Data Centre-Linked Stocks Advance 

Vicor Corporation rose 13.10% to $208.00, gaining $24.09, with trading volume of 117,820 shares and a market capitalisation of $9.59 billion. INNIO N.V. gained 9.94% to $20.57, adding $1.86, while its market capitalisation stood at $15.43 billion. 

Also Read: What Are Fractional Shares? 

Ciena Corporation climbed 8.03% to $368.09, gaining $27.37, with a market capitalisation of $52.198 billion. Tower Semiconductor rose 7.93% to $218.23, adding $16.03, with a market capitalisation of $24.667 billion. 

Other notable gainers included TeraWulf, up 7.76% to $16.58, and X-Energy, which gained 7.69% to $15.69. Applied Digital rose 7.59% to $26.24, while Hyperliquid Strategies gained 7.43% to $12.29 and SharonAI Holdings advanced 7.41% to $56.08. 

Celestica rose 7.00% to $346.17, while DigitalOcean gained 6.69% to $132.10. Twist Bioscience added 6.64% to $152.57, Solaris Energy Infrastructure rose 6.13% to $68.53, and IREN gained 5.21% to $44.84. 

EquipmentShare.com advanced 6.85% to $18.79, while Hut 8 added 5.41% to $94.68. Coherent rose 5.34% to $305.11, Silvercorp Metals gained 5.81% to $11.83, and Telix Pharmaceuticals advanced 5.75% to $12.51. 

Marvell Technology gained 5.47% to $242.28, while Tempus AI rose 6.07% to $74.22. Cipher Digital added 4.90% to $17.54, GFL Environmental climbed 5.13% to $43.17, and Nokia Oyj advanced 5.72% to $10.72. 

Pegasystems Falls 5.21% and Arcutis Biotherapeutics Drops 4.69% Among Top Losers 

On the losing side, Pegasystems fell 5.21% to $34.92, down $1.92, with a market capitalisation of $5.741 billion. Arcutis Biotherapeutics dropped 4.69% to $24.92, losing $1.22, with a market capitalisation of $3.132 billion. 

monday.com declined 4.24% to $90.07, down $3.99, while Maplebear fell 2.66% to $45.61, losing $1.24. Guidewire Software slipped 2.15% to $143.57, down $3.15, with a market capitalisation of $11.683 billion. 

Salesforce dropped 2.10% to $245.00, losing $5.26, with a market capitalisation of $200.277 billion. DocuSign fell 1.61% to $69.27, down $1.14, while Sasol declined 2.76% to $13.91, losing $0.40. 

Lyft slipped 2.61% to $15.28, down $0.41, with a market capitalisation of $5.786 billion. CoreWeave fell 3.34% to $80.57, down $2.78, while Freshworks declined 1.77% to $12.51, losing $0.22. 

Nokia Gains 5.72% on Microsoft Data Foundation Partnership in Pre-Market Trading 

Nokia said it had expanded its partnership with Microsoft to develop an agentic, unified data foundation supporting faster and more reliable AI-driven operations for telecommunications providers. The partnership combines Nokia Data Suite’s ready-to-use telco data products with Microsoft Fabric’s unified analytics, governance, and AI capabilities, enabling intelligent, agent-based solutions across the network stack.  

US-listed shares of Nokia rose 5.72% to $10.72 in early trade. Meta was also in focus ahead of its upcoming developers conference, which analysts viewed as a near-term catalyst for the stock. Snap rose 2.62% in pre-market trading after announcing new enterprise partnerships with Salesforce, Nvidia, and Amazon Web Services to bring computing capabilities to its augmented reality glasses, SPECS, for field service, remote support, and retail work.  

Arm Holdings was 2.67% higher in pre-market trading as its chief executive expressed confidence in the company’s first in-house data centre chip, the AGI CPU, achieving its $2 billion revenue target. Lennar fell 1.79% after missing top- and bottom-line estimates for the third quarter. Fluence Energy dropped 19.9% in pre-market trading after cutting its full-year guidance.  

Canadian Prime Minister Mark Carney told the European Parliament that he was open to the idea of Canada becoming the European Union’s first associate member, an idea that President Donald Trump said the US could interpret as a hostile act. 

Key watchpoints include the Fed’s next policy meeting, October and December rate probabilities, Treasury yield direction, oil supply updates, Bank of Japan guidance, and US housing and labour data. The session highlighted how energy prices, rate expectations, and technology shares influence index moves. Official data releases and central bank statements remain the primary sources for assessing economic momentum. 

 Source 

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