Wall Street is trying to extend yesterday’s rebound as falling oil prices ease some inflation pressure.
U.S. stocks bounced strongly on Thursday after the previous session’s Fed-driven selloff. The S&P 500 gained 1.1%, the Dow 0.6%, and the Nasdaq 1.7%, with technology and semiconductor stocks leading the recovery.
Today, U.S. futures are pointing higher, while Brent crude has fallen around 2% toward $103 a barrel. Lower oil prices are giving investors some relief because expensive energy has been adding to inflation concerns.
The bigger issue remains the Federal Reserve. The Fed recently raised its benchmark rate to 3.75%–4.00%, its first increase since 2023, while signaling that additional tightening could still be possible.
🔥 What traders are watching
Nasdaq & AI/chip stocks: momentum remains strong.
Oil: another major driver of inflation expectations.
Treasury yields: lower yields are currently supporting equities.
Fed policy: future rate increases could create renewed volatility.
Quadruple witching: Friday’s simultaneous expiration of major stock-index futures and options could increase trading activity and volatility.
Bottom line: today’s market mood is being shaped by a tug-of-war between strong technology momentum and renewed interest-rate/inflation risks.
