U.S. stocks rallied on Thursday as investors moved past the Federal Reserve’s first rate hike in three years and welcomed a pullback in oil prices. The Dow Jones Industrial Average gained about 0.7%, while the S&P 500 climbed 1.1% and the tech-heavy Nasdaq Composite jumped 1.6%, rebounding sharply from Wednesday’s post-Fed weakness.
Technology led the recovery as markets weighed Fed Chair Kevin Warsh’s hawkish policy message against signs that the central bank is taking inflation seriously. Brent crude also retreated toward $104 per barrel, easing some of the immediate energy-driven inflation fears that have rattled stocks and pushed bond yields higher in recent weeks.
Market Movers:
- Generac Holdings (GNRC) +24%: Shares soared after the backup-power company announced a long-term agreement to supply Amazon data centers, including $2.4 billion in initial generator deliveries during 2027 and 2028. The agreement could ultimately generate up to $8 billion in payments to Generac and its affiliates, highlighting the enormous power requirements behind the AI data-center boom.
- Vicor Corporation (VICR) +14%: Shares jumped after the power-component maker announced a licensing agreement covering its Vertical Power Delivery technology for high-performance AI processors. The deal gives Vicor another way to monetize its technology through royalties and component sales, although the company did not disclose the customer, financial terms or expected purchase volumes.
- Lucid Group (LCID) +9%: Shares rallied after Lucid and European mobility platform Bolt announced plans to develop and deploy at least 25,000 autonomous vehicles across European cities. The fleet will be based on Lucid’s upcoming midsize platform and is expected to use Nvidia’s Hyperion architecture to support Level 4 autonomous driving.
- Workday (WDAY) +7%: Shares rose following a report that financing efforts for a potential take-private transaction remain underway, reviving speculation that a deal could still materialize. The latest development follows earlier reports that private equity firm Silver Lake was exploring an acquisition, although no transaction has been finalized.
- Fluence Energy (FLNC) -17%: Shares plunged after the energy-storage company slashed its fiscal 2026 revenue forecast to $2.4 billion from a previous range of $2.9 billion to $3.1 billion. Fluence also now expects an adjusted EBITDA loss of roughly $200 million, sharply worse than its previous forecast for a loss of around $10 million, as supply-chain problems and manufacturing delays weigh on results.
- Viant Technology (DSP) -17%: Shares sank after the advertising technology company announced an underwritten offering of 8.5 million Class A shares by a selling stockholder. Viant will receive no proceeds from the base offering, while the potential addition of another 1.28 million shares through the underwriters’ option added to selling pressure.
- Paramount Skydance (PSKY) -5%: Shares fell amid uncertainty surrounding the company’s planned $110 billion Warner Bros. Discovery acquisition and reports of a dispute over potential structural concessions. The company has also reportedly considered relocating its movie studio out of California if the regulatory dispute is not resolved.
- CoreWeave (CRWV) -4%: Shares declined after the AI infrastructure company proposed a $3 billion convertible senior notes offering, with buyers receiving an option for another $500 million. CoreWeave also established a program allowing it to sell as many as 35 million Class A shares, raising concerns about potential dilution as the company continues funding its capital-intensive expansion.
Fed Hike Calms One Fear but Raises Another
The Fed raised its benchmark rate by 25 basis points Wednesday in a unanimous decision, marking its first increase in three years. Policymakers also projected another rate hike before the end of 2026, reinforcing Warsh’s message that the central bank remains focused on bringing inflation under control. Markets initially struggled with that hawkish outlook but reversed course Thursday. Investors appear to be balancing the prospect of higher borrowing costs against the possibility that tighter policy could prevent the recent surge in energy prices from becoming a more persistent inflation problem.
Oil Retreat Gives Wall Street Some Breathing Room
Oil provided another source of relief. Brent crude slipped toward $104 per barrel after U.S. Energy Secretary Chris Wright said Saudi Arabia’s East-West pipeline, an increasingly important alternative route for crude supplies, could soon return to service. Crude remains historically elevated, so energy prices are far from disappearing as a market risk. Still, Thursday’s decline helped ease fears of another immediate inflation shock and gave growth stocks room to rebound.
AI Infrastructure Trade Finds New Momentum
Thursday’s biggest gainers also underscored that investors remain willing to bet on the physical infrastructure behind AI. Generac’s massive Amazon agreement highlighted the growing need for dependable power at data centers, while Vicor’s licensing deal reinforced demand for technologies capable of supporting increasingly power-hungry AI processors.
Memory stocks joined the rally as well after Intel CEO Lip-Bu Tan warned that tight memory supplies could become an even larger bottleneck in 2027. Micron jumped more than 5%, while Nvidia, Broadcom and SK Hynix also gained as expectations for constrained supply supported the outlook for chip pricing.
Looking Ahead
Thursday’s rally suggests investors were willing to look past the Fed’s initial hawkish message, but the path for rates remains a major variable heading into the final months of the year. With another hike projected, upcoming inflation, labor-market, and consumer data will determine whether expectations for additional tightening continue to build. At the same time, the AI infrastructure trade is showing renewed strength after a volatile week for technology stocks. Generac’s Amazon deal and continued concerns about memory shortages are shifting attention toward the power, chips, and physical capacity needed to support AI growth — a theme that could remain a major driver for the market even as higher rates pressure valuations.