Dow Jumps 200 Points After Fed-Related Sell-Off – Index On Track To Post Best Week In A Month

U.S. stocks rose in early Thursday trading, rebounding from the previous session’s Fed-driven selloff as falling oil prices and optimism surrounding the Iran peace deal boosted investor sentiment.

• The Dow Jones Industrial Average climbed around 0.4%, the S&P 500 index gained around 0.8%, while the Nasdaq Composite jumped more than 1%.
• Crude oil prices fell to their lowest levels in more than three months, with both WTI and Brent futures trading at less than $80 per barrel
• Intel shares jumped 6% after President Donald Trump said Apple had agreed to use the chipmaker’s foundry services.

U.S. equities rose in Thursday morning’s trade, with the Dow Jones Industrial Average reversing Wednesday’s fall to climb more than 200 points higher.

The DJIA climbed around 0.4% to around 51,708.55. The S&P 500 index gained around 0.8% while the Nasdaq Composite jumped more than 1%.

Home Depot and Caterpillar were among the session’s top gainers, while IBM and Merck ranked among the biggest laggards at the time of writing. Meanwhile, Intel shares jumped 6% in early trading after President Donald Trump said Apple had agreed to use the chipmaker’s foundry services.

Stocks Rebound After Fed’s Hawkish Tone Led To Selloff

U.S. stocks rebounded after closing lower on Wednesday as investors reassessed the outlook for interest rates following the Federal Reserve’s latest policy meeting. Although the Fed kept interest rates unchanged at 3.5% to 3.75% in Kevin Warsh’s first meeting as Chair, several policymakers indicated that another rate hike could be on the table this year if inflation remained elevated.

Blue-chip technology stocks dragged the market lower, with Microsoft (MSFT), Meta Platforms (META), Alphabet (GOOG, GOOGL), and Amazon (AMZN) all ending the session in negative territory. SpaceX posted its first decline since its market debut last week.

Iran Peace Deal In View

Donald Trump and Iranian President Masoud Pezeshkian signed a preliminary agreement on Wednesday in a bid to end the conflict between the two countries and reopen the Strait of Hormuz, a move that could increase global oil supplies.

According to a BBC report, U.S. Defense Secretary Pete Hegseth said Washington remains prepared to “reimpose an ironclad blockade” and other measures if Iran fails to comply with the terms of the agreement.

Crude Falls To Over 3-Month Lows

Crude oil prices fell to their lowest levels in more than three months. U.S. West Texas Intermediate (WTI) crude futures expiring in July fell 2.8% to hover around $73.85 a barrel. Brent crude futures expiring in August fell 3.4% to hover around $76.83 a barrel.

The United States Oil Fund ETF (USO) fell around 2.9% while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) slumped about 5%.

Retail’s Take On SPY, QQQ and DIA

Retail sentiment surrounding the three ETFs on Stocktwits trended in the ‘bullish’ territory.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, edged 1% higher, the Invesco QQQ Trust ETF (QQQ) gained more than 2%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.5%.

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