U.S. stock indices rose on Thursday, recovering from losses in the previous session that followed a Federal Reserve interest rate announcement. The S&P 500 and Nasdaq Composite posted gains, while shares of Boeing Co. declined after the company provided an updated outlook on aircraft production and free cash flow.
The S&P 500 closed up more than 1%, and the Nasdaq Composite gained 1.6% on Thursday, September 17. According to a market summary from the CNBC Investing Club, the rally was supported by lower oil prices and bond yields.
The previous day’s market downturn followed the Federal Reserve’s decision to raise interest rates. Jeff Marks, portfolio director for the investing club, attributed Wednesday’s declines to the rate hike and comments from Fed Chairman Kevin Warsh regarding inflation. Marks cautioned against predicting future rate moves, stating, “inflation is very dependent on swings in oil.”
In corporate news, Boeing shares were lower, extending a 3.7% decline from the prior day. At a Morgan Stanley conference, the company announced that efforts to stabilize its 737 Max production at a rate of 47 planes per month are taking longer than previously anticipated. Boeing officials cited wing production issues as a factor but said a solution is in place.
Boeing Chief Financial Officer Jay Malave also stated that the company’s free cash flow is less likely to exceed the midpoint of its projected $1 billion to $3 billion range for the year.
In the technology sector, some semiconductor stocks recorded significant gains. Intel shares rose nearly 10%, and Micron Technology’s stock increased by more than 5%.
Separately, officials in Loudoun County, Virginia, voted to implement a 12-month pause on accepting new applications for data centers. The region is a major hub for data infrastructure. Marks noted during the livestream that such a pause could potentially help companies involved in data center construction manage existing supply constraints.
