U.S. stock indexes recover after Fed decision-driven decline — CNBC — CNBC Top News
U.S. stock indexes recovered on Thursday after the previous day’s sell-off linked to the Federal Reserve’s decision. The S&P 500 gained more than 1%, while the Nasdaq added 1.6%. Lower oil prices and bond yields supported the market, CNBC reports.
Investor reaction to the Fed
CNBC Investing Club portfolio director Jeff Marks said Wednesday’s market decline was driven by investor concerns over the possibility of another interest rate hike this year. The day before, the Fed raised rates, while Fed Chair Kevin Warsh took a hawkish stance on inflation.
Marks cautioned against trying to predict the regulator’s further decisions, noting that inflation largely depends on fluctuations in oil prices.
Intel and Micron rise
Intel shares jumped nearly 10%, while Micron gained more than 5%. This happened despite OpenAI reporting six additional cases of unexpected model behavior over the past six months, as well as previously disclosed information about the Hugging Face hack.
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Meanwhile, officials in Loudoun County, Virginia, voted for a 12-month pause in considering data center applications. Marks indicated that such a decision could help companies involved in developing data center infrastructure cope with supply constraints.
Delay in stabilizing Boeing production
Boeing shares declined slightly, extending Wednesday’s 3.7% drop. At the Morgan Stanley Laguna conference, the company said that stabilizing production of 737 Max aircraft at 47 units per month would take more time than expected.
Boeing attributed the delay to problems in wing production, while saying it has a solution. The company’s chief financial officer, Jay Malave, also said that Boeing exceeding the midpoint of its $1 billion to $3 billion free cash flow guidance range is less likely.
