Finance

Equity markets experienced heightened volatility following a unanimous decision by the Federal Reserve to raise its main interest rate by 25 basis points. This move marks the central bank's first rate increase since 2023, reflecting a persistent focus on combating sticky inflation. Although the decision initially triggered a 600-point drop in the Dow, broader markets managed to stabilize the following day as investors digested the long-term outlook.

The technology sector spearheaded Thursday's upward movement, with the S&P 500 Information Technology index advancing over 2%. Notable gains from companies like Intel and Super Micro Computer helped drive the sector higher, pushing the Nasdaq up by nearly 440 points. Investors eagerly re-entered tech and artificial intelligence trades as macro pressures from the bond market briefly cooled.

Digital assets saw mixed but generally positive price action following the Federal Reserve's rate hike, with Bitcoin trading near $76,800 and Ethereum hovering around $2,450. The stability comes despite recent legislative headwinds caused by the failure of the CLARITY Act to clear the Senate. Traders had previously shifted capital into stablecoins to minimize risk exposure ahead of the central bank's monetary policy update.