Stocks Bounce After Fed Rate Hike Decision Along with Gold and Silver; Tech Remains Preferred as Dow Sits in the Red

Stocks staged a broad rally just one day after the FOMC raised interest rates 25 basis points in action that seemed to be suspiciously-timed.

The one-day event moved the needle on stocks from negative toward positive for the week, though not sufficiently to get the Dow out of the doldrums. As of Thursday’s close, the 30 blue chips were down 795 points. The NASDAQ was up 85 points through the closing bell Thursday, while the S&P 500 remained down 19 points.

While it is obvious that Wall Street would have preferred the FOMC to keep rates at the prior levels or even lower the federal funds rate, there appears to be a contingent of traders and interests that could not care less.

Judging by Thursday's reaction rally, it's apparent that tech continues to lead, while stocks which provide dividend returns, such as many of the Dow stocks, are being unloaded because fixed income rates are approaching, or have exceeded, the returns on those stocks, without the attendant market risk.

Thursday also featured a meaningful bounce in precious metals as gold and silver both jumped during the day in the West and overnight into Friday. Gold recovered to as high as $4,400, and silver is holding steady around $66.50.

As the opening bell approaches, stock futures are diving, with only the NASDAQ, which operates under a completely different set of priorities and guidance, holding in positive territory.

Friday's trading should see a continuation of the tug of war between equity bulls and bears, though with the last two weeks providing sufficient clues on directionality, the bears appear to have the upper hand for a variety of reasons, not the least of which is the glaringly obious overvaluation in stocks overall.

Thursday's run-up was nothing more than a hissy fit staged by longs to offer the impression that the market can survive anything, even rate intervention by the now-hated Fed, which refuses to offer forward guidance and the opportunity to front-run rates.

Speaking of which, the 10-year is still yielding 4.98% and the 30-year bond, 5.31%. High rates are usually regarded as anathema for stocks.

At the Close, Thursday, September 17, 2026:
Dow: 51,778.04, +316.14 (+0.61%)
NASDAQ: 26,418.30, +439.88 (+1.69%)
S&P 500: 7,637.76, +85.95 (+1.14%)
NYSE Composite: 24,089.55, +155.41 (+0.65%)