US stock futures moved sharply higher on Thursday, September 17, as falling oil prices and lower Treasury yields supported a rebound after the Federal Reserve raised interest rates a day earlier.
Technology stocks led the premarket gains. Investors also tracked developments in the Middle East, fresh US economic data and the possibility of another Fed rate increase before the end of 2026.
At 8:29 a.m. ET, Dow Jones futures rose 582 points, or 1.13%. S&P 500 futures gained 1.21%, while NASDAQ 100 futures climbed 1.58%. Later market readings showed Dow futures gaining around 600 points as the rebound gathered pace.
Technology shares supported the broader move. Nvidia and Amazon gained nearly 2% each before the opening bell, while Microsoft rose about 1%. Applied Materials, Qualcomm and Intel also advanced around 3%.
The US stock market gains followed losses in the previous session. The Dow fell more than 630 points, or 1.2%, on Wednesday. The S&P 500 declined 0.5%, while the NASDAQ Composite finished almost flat.
Oil prices dropped for a second session as concerns over Middle East supply disruptions eased. Brent crude fell more than 3% toward USD 102 a barrel after trading above USD 109 earlier in the week. West Texas Intermediate crude also moved below USD 100.
Reports that Saudi Arabia could restore part of its East-West pipeline capacity within days helped ease supply concerns. The country also reportedly planned additional crude shipments to Asian refiners through transfers near Oman.
However, the conflict in Yemen continued to keep energy markets on alert. Fighting has raised concerns about shipping through the Red Sea, while damage to Saudi pipeline infrastructure has added uncertainty around regional supply.
The benchmark 10-year US Treasury yield moved back below 5%, falling to around 4.95%. The yield had climbed above 5% after the Fed announced its policy decision on Wednesday.
Lower Treasury yields reduced some pressure on equities, particularly technology companies. Higher government bond yields can make risk-free assets more competitive with stocks and increase financing costs for businesses.
The Federal Reserve raised its benchmark rate by 25 basis points to a target range of 3.75% to 4%. It marked the central bank's first rate increase since 2023.
Fed Chair Kevin Warsh maintained a firm stance on inflation, while policymakers indicated that another increase could come before the end of the year. Traders placed the chance of another hike at the October meeting at around 53%, up from about 44% a day earlier.
Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, said Warsh ‘threaded the needle very well.’ He also noted that inflation had remained above the Fed's target for several years.
Kim Forrest, Chief Investment Officer at Bokeh Capital Partners, said: “It doesn't feel like we've entered the type of rate-hiking cycle we saw in 2022 and 2023.”
Cloud computing companies linked to artificial intelligence recorded strong moves before the opening bell. Nebius gained about 10%, while IREN advanced roughly 6%.
CoreWeave initially joined the gains but later fell more than 3% after announcing plans to raise capital through stock and convertible bond offerings.
Elsewhere, Fluence Energy shares dropped more than 22% after the energy storage company lowered its fiscal 2026 revenue forecast.
Investors also reviewed new US economic figures. Initial jobless claims fell to 196,000 for the week ended September 12, below forecasts of 207,000. Meanwhile, August building permits and housing starts came in below market estimates.
Markets now face a mix of lower oil prices, changing Treasury yields and expectations for further Federal Reserve action. Investors will continue tracking energy markets and incoming economic data as they assess the direction of US interest rates.
Also Read: Dalal Street Braces for Mega Thursday as NSE IPO Opens, Six Stocks Make Debut