By Tharuniyaa Lakshmi
Sept 17 (Reuters) - The major US stock indexes jumped on Thursday as retreating oil prices improved market sentiment, with the Federal Reserve's first interest-rate hike under Chair
Kevin Warsh underscoring the central bank's commitment to managing inflation.
The policy decision, which addressed a chronic source of unease, prompted investors to return to favored sectors. Technology shares rose, with Nvidia and Amazon adding more than 2% each.
The gains will be crucial in the second half of September, historically a weak month for equities, with the benchmark S&P 500 losing 1.7% so far this month.
"For equities, the message is clear. The start of a hiking cycle can bring volatility, but volatility does not have to end a bull market," said Brett Mitstifer, chief investment officer of private banking and wealth management at Flagstar Bank.
"If this cycle remains measured, disciplined investors should view market dislocations as opportunities to upgrade quality, not reasons to abandon risk altogether."
At 11:42 a.m. ET, the Dow Jones Industrial Average rose 316.52 points, or 0.61%, to 51,778.04, the S&P 500 gained 80.05 points, or 1.06%, to 7,631.86, and the Nasdaq Composite was up 411.57 points, or 1.59%, to 26,390.96.
The small-cap Russell 2000 index added more than 1% to 2,891.45 despite its greater sensitivity to interest rates.
However, the Fed warned more hikes may be needed in the coming months to control prices. Uncertainty over how high interest rates could ultimately rise is likely to keep stocks and bonds volatile in the weeks ahead.
Traders see a near 51% chance of another increase when the central bank meets next, in October, compared with about 44% a day ago, according to CME's FedWatch.
The yield on the benchmark 10-year U.S. Treasury also slipped, taking some pressure off equities. High yields on risk-free U.S. Treasuries typically dampen the appeal of stocks.
Eight of the 11 major S&P 500 sectors were trading higher. Utilities led gains with a 1% jump.
The S&P 500 financials index was flat and on course for its fourth consecutive day in the red.
OIL PULLS BACK, MIDDLE EAST RISKS PERSIST
Meanwhile, oil prices dropped for the second straight day, with Brent crude futures down more than 2% to $103.43. US West Texas Intermediate crude futures fell about 2% to $100.66.
Crypto-linked stocks rose after the US securities regulator unveiled a five-year exemption for tokenized stock trading. Robinhood and Circle Internet Group rose about 3% and 4%, respectively, while Coinbase advanced 3%.
Shares of neocloud firms gained, with Nebius and IREN up about 2% each. Nebius said it will raise pay-as-you-go prices for leasing select Nvidia chips from October 1.
CoreWeave fell 4% after it announced plans to raise capital via stock and convertible bond offerings.
Fluence Energy tumbled more than 14% after lowering its revenue forecast for fiscal year 2026.
Gold miners rose following a 2% jump in bullion prices. The VanEck Gold Miners ETF added 3.5%.
Advancing issues outnumbered decliners by a 2.9-to-1 ratio on the NYSE and by a 3.03-to-1 ratio on the Nasdaq.
The S&P 500 posted 12 new 52-week highs and 15 new lows, while the Nasdaq Composite recorded 46 new highs and 87 new lows.
(Reporting by Niket Nishant and Tharuniyaa Lakshmi in Bengaluru; Editing by Joyjeet Das and Pooja Desai)
