Stocks and bonds rally after Fed hikes rates and oil prices fall

U.S. stock indexes rose sharply Thursday morning after the Federal Reserve hiked interest rates in a bid to rein in rising inflation.

In early trading, the S&P 500 soared 1.2% while the Nasdaq Composite surged 1.6%. The Dow Jones Industrial Average rose 450 points, or 0.9%. The Russell 2000 index, which tracks small and midsize companies, rose 1.5%.

The jump in stocks also came alongside a rally in bonds, sending their yields lower, as the price of oil declined for a second straight day. U.S. crude oil briefly fell below $100 per barrel for the first time since Sept. 11, and Brent crude fell to as low as $101 after hitting $109 just two days earlier.

There was also positive economic news in the latest jobless claims report, which showed that filings for unemployment claims declined to the lowest level since July. However, this data could be an outlier because last week was a short holiday week.

U.S. Treasury bond yields fell as stock markets rose. After touching 5.02% on Wednesday, the 10-year Treasury yield declined to 4.96%. The 30-year yield declined to 5.31% after hitting 5.36% a day earlier.

Bond yields around the world also eased further after the…

Original source: https://www.nbcnews.com/business