U.S. equities are rebounding Thursday after the Federal Reserve delivered its first rate increase in more than three years, removing the immediate policy-event risk while signaling that additional tightening remains possible. At 4:45 a.m. ET, Dow futures were up 0.66%, S&P 500 futures were up 0.74% and Nasdaq 100 futures were up 0.96%. Wednesday, the Dow fell 1.21%, the S&P 500 declined 0.44%, the Nasdaq was nearly unchanged at -0.01% and the Russell 2000 fell 0.40% as stocks reversed earlier gains following the Fed decision.
Sector performance was broadly negative Wednesday. Technology led with a 0.10% gain, followed by Health Care +0.04% and Utilities +0.01%, while Industrials slipped 0.12%. Energy was the weakest sector at -2.97%, followed by Financials -1.62%, Materials -0.73%, Consumer Discretionary -0.68%, Real Estate -0.67%, Communication Services -0.62% and Consumer Staples -0.53%. Breadth was negative at 1.51:1 on the NYSE and 1.61:1 on the Nasdaq.
The Fed unanimously raised the federal-funds target range 25 basis points to 3.75%-4.00% and indicated that further tightening may be needed. Sixteen of 18 policymakers project at least one additional hike this year, while markets currently price roughly a 51%-53% probability of another increase in October. Wednesday’s 2-year Treasury yield rose 7 basis points to 4.74%, the 10-year gained 1 basis point to 5.02% and the 30-year slipped 1 basis point to 5.35%. Early Thursday, the 10-year has eased back just below 5%, providing some relief to equity valuations.
The DXY closed Wednesday at 100.26, with the euro at $1.1470, sterling at $1.3385 and the dollar at ¥156.18. The dollar remains near a seven-week high after the Fed’s hawkish shift. October WTI fell 3.51% Wednesday to $102.12 and is down again near $101.60 this morning as Saudi Arabia increases shipments through Oman. Brent is near $104.7. December gold fell 0.54% Wednesday to $4,309.20, while spot gold is rebounding modestly near $4,293.
Today’s calendar includes weekly jobless claims, August housing starts and building permits, and the Philadelphia Fed Manufacturing Survey at 8:30 a.m. ET, followed by pending-home sales at 10:00 a.m. Housing data will be closely watched after builder confidence fell to a one-year low and 30-year mortgage rates climbed above 6.7%.
Company News by GICS Sector
Information Technology
- CoreWeave (CRWV +6% premarket), Nebius (NBIS +9%) and IREN (IREN +5%) are leading the AI-infrastructure rebound as lower long-term yields revive demand for high-growth technology exposure.
- Intel (INTC) gained 4.0% Wednesday after reports that SK Hynix is discussing U.S. memory-chip production with Intel, potentially through its Ohio facility or a joint venture.
- Nvidia (NVDA) and the broader semiconductor complex are firming after the Philadelphia Semiconductor Index posted its first clear gain since last week’s AI-safety-driven selloff.
Communication Services
- Alphabet (GOOGL +1%+) and Meta Platforms (META +1%+) are higher premarket as investors return to mega-cap AI exposure following the Fed decision and modest easing in long-term Treasury yields.
Industrials
- Generac (GNRC +30%+ premarket) is surging after signing a long-term agreement to supply approximately $2.4 billion of backup generators to Amazon data centers in 2027-28. Purchases could ultimately reach $8 billion, with Amazon also receiving warrants representing nearly 3% of Generac shares.
- Fluence Energy (FLNC -18% premarket) is plunging after lowering its fiscal 2026 revenue forecast, offsetting some of the broader strength in AI- and power-infrastructure names.
- Boeing (BA -3.7% Wednesday) remains in focus after CEO Kelly Ortberg said stabilizing 737 MAX production at 47 aircraft per month is taking longer than expected.
Consumer Discretionary
- Lennar (LEN) fell about 3% after hours after third-quarter profit more than halved as mortgage rates above 7% continued to pressure housing demand and builder margins.
- Darden Restaurants (DRI) reports fiscal first-quarter results before the open. Restaurant traffic, pricing and margins will provide another read on consumer resilience following Wednesday’s stronger-than-expected retail-sales report.
Financials
- Goldman Sachs (GS) remains in focus after falling nearly 4% Wednesday. CEO David Solomon said third-quarter fixed-income, currencies and commodities revenue is running somewhat softer, while equities remain strong and investment income is expected to moderate.
- Robinhood (HOOD -5.5% Wednesday) remains pressured after the Senate failed to advance major cryptocurrency legislation. Two former Robinhood engineers were also charged by the Justice Department with insider trading and misuse of confidential information.
Energy
- Exxon Mobil (XOM), Chevron (CVX), ConocoPhillips (COP) and Devon Energy (DVN) are attempting to stabilize after Wednesday’s crude-driven selloff. Exxon fell 3.5%, Chevron 2.9%, while ConocoPhillips and Devon each lost more than 5% as Saudi supply alternatives reduced immediate disruption fears.
