Dow Jones Rises 420 Points as Oil Prices Fall 3% on Supply Concerns Easing

Major U.S. stock indices opened higher on Thursday, buoyed by improved investor sentiment following a drop in oil prices. The Federal Reserve’s first interest rate increase under Chair Jerome Powell also contributed to market confidence, reinforcing its commitment to curbing inflation.

Stock indices post strong opening gains

The Dow Jones Industrial Average rose 420.6 points, or 0.82%, to close at 51,882.53. The S&P 500 opened 79.6 points higher, up 1.05% at 7,631.44. The Nasdaq Composite gained 399.4 points, or 1.54%, to reach 26,377.864.

Oil prices fall 3% to lowest level in a week

Crude oil prices declined at the start of Thursday’s trading session, extending losses from the previous session. Brent crude futures dropped $3.85, or 3.64%, to $101.98 per barrel by 10:00 GMT — hitting their lowest level since September 10. West Texas Intermediate (WTI) futures fell $3.00, or 2.93%, to $99.43 per barrel. Both contracts had declined by approximately $3.00 on Wednesday.

Earlier in the week, oil prices had climbed to their highest level in nearly four months.

Global bond yields rise amid inflation and funding pressures

Government bond yields are rising across major economies. Investors cite persistent inflationary pressures, elevated oil prices, and growing government borrowing needs as key drivers. These factors are increasing financing costs and reshaping global capital flows.

Only three vessels transited the Strait of Hormuz, according to reports, contributing to easing supply concerns that helped weigh on oil prices.