Nasdaq Rises 1.51% as 10-Year Yield Drops to 4.951%

The 10-year Treasury yield fell to 4.951%. This drop of more than five basis points drove the market rally. The Nasdaq Composite rose 1.51% to 26,371.21. The S&P 500 gained 1.16% to 7,639.75. The Dow Jones Industrial Average climbed 0.77% to 51,857.71. Investors returned to technology stocks after Wednesday's sell-off. The Dow had lost 630 points the previous day. Financial stocks absorbed the initial impact of the rate decision. Technology names held their ground better during Wednesday's decline.

Initial jobless claims fell to 196,000. This figure was well below the 207,000 estimate. Continuing claims dropped 39,000 to 1.73 million. Strong labor data did not support the case for immediate rate cuts. Housing indicators showed weakness. Building permits fell 2.7% in August. Housing starts dropped 2.6% to 1.275 million. The rate-sensitive housing sector shows signs of stress. The labor market remains resilient.

Tech hardware leads the recovery

Semiconductor and infrastructure stocks drove the Nasdaq gain. Marvell Technology rose 4.5% before the open. Lam Research and Corning gained 4%. Arm Holdings added roughly 4%. Seagate and Western Digital each rose about 3.5%. Applied Materials, Qualcomm, and Intel were higher by about 3%. Nvidia and Amazon each gained 2%. Microsoft rose 1%. These companies did not participate in Wednesday's decline. The rebound focused on AI hardware components. Software and cybersecurity names lagged behind. The market is buying the dip in the hardware trade. The split within the technology sector remains distinct.

Futures test key technical levels

December E-mini S&P 500 futures moved sharply higher. The contract tested the 61.8% retracement level at 7,584.00. Buyers overcame the 50% level at 7,632.00. This move overpowered the 50-day moving average at 7,705.65. A new short-term range formed between 7,904.00 and 7,575.00. The retracement zone between 7,739.50 and 7,778.25 is the next target. The main trend remains down on the daily chart. A trade through 7,833.50 would change the trend to up. The minor trend would turn up on a trade through 7,750.50.

Yields fall and crude drops

Crude oil prices fell below $100 per barrel. This was the first time in over a week. Lower yields provided relief to growth stocks. The Federal Reserve left further hikes on the table. Chair Warsh stated inflation remains too high. The market digested the rate decision quickly. UBS Global Wealth Management expects further equity gains. The firm also prepares for near-term volatility. The rebound suggests investors view the hike as manageable. Capital flowed back into names that held up best Wednesday. The direction of the market favored tech over financials.