US stocks bounced back on September 17, 2026, with the S&P 500 rising 1.1% and the Nasdaq 100 also seeing gains, as a pullback in oil prices eased inflation concerns and boosted risk appetite. This rally followed an initial drop after the Federal Reserve's first interest rate hike in three years. Julian Emanuel, chief equity and quantitative strategist at Evercore ISI, suggested investors rebalance from stocks to fixed income, yet the market saw significant buying in areas previously hit by anticipation of the Fed's move.
The Dow Jones Industrial Average rose 316.14 points, or 0.61%, to 51778.04. The S&P 500 gained 85.95 points, or 1.14%, to 7637.76, and the tech-heavy Nasdaq Composite added 439.87 points, or 1.69%, to 26418.30. This upward trend was fueled by confidence in Fed Chair Kevin Warsh's strategy and optimism about a rapid return of Saudi oil to the market, which helped tame inflation concerns. Crude futures declined by $0.52 to $101.91 a barrel.
The rebound also saw US Treasury yields dip, with the two-year Treasury yield declining 0.038 percentage points to 4.688%. The 10-year Treasury note yield fell 0.057 percentage points to 4.946% from a 19-year high, and the 30-year bond yield dropped 0.050 percentage points to 5.296%. Tech stocks led the rally, and the CBOE Market Volatility Index, often called the "fear index," touched its lowest level in over a week, indicating easing market anxiety.
