Dow opens 310 pts higher as Fed rate hike overhang lifts

• The Fed's dot plot showed 16 of 18 policymakers expect at least one more quarter-point hike before the end of 2026, with Chair Kevin Warsh calling inflation 'too high' and financial conditions not yet restrictive enough
• Technology stocks including Alphabet and Meta gained over 1% as the 2-year Treasury yield fell 1 basis point to 4.72% and longer-term yields eased about 2 basis points
• Fluence Energy plunged 19% after cutting its fiscal 2026 revenue forecast, while President Trump criticized the rate hike, calling for rates at 1% or lower and creating tension with the Fed

Market Summary

Market Performance:

U.S. stocks rebounded strongly on Thursday, September 17, 2026, following Wednesday's selloff. The Dow Jones Industrial Average surged 311 points, the S&P 500 gained 1.2%, and the Nasdaq Composite climbed 1.59%. Technology stocks led the recovery, with Alphabet and Meta both advancing over 1%.

Federal Reserve Action:

The Fed raised its benchmark interest rate by a quarter point on Wednesday—its first hike since 2023. The decision was unanimous, with Chair Kevin Warsh taking a hawkish stance, calling inflation "too high" and stating financial conditions weren't restrictive enough. The Fed's dot plot indicated 16 of 18 policymakers expect at least one more quarter-point increase before year-end 2026.

Bond Market Response:

Treasury yields eased Thursday after spiking Wednesday. The 2-year yield fell 1 basis point to 4.72% (its highest since 2024), while 10-year and 30-year yields declined approximately 2 basis points each, helping support risk assets.

Notable Movers:

Fluence Energy plummeted 19% after cutting its fiscal 2026 revenue forecast. Neocloud firms Nebius and IREN posted gains. Oil prices fell sharply following reports of U.S.-Houthi talks in Oman, potentially easing Middle East tensions.

Political Tensions:

President Trump publicly criticized the rate hike via social media, stating rates should be 1% or lower and calling current levels "not appropriate," setting up ongoing friction between the White House and Fed.

Market Context:

Despite Thursday's rally, the S&P 500 remains down 1.7% for September. Analysts note inflation has stayed above the Fed's target for over five years, suggesting policy debates will continue.