The Dow Jones Industrial Average gained 317.95 points, or 0.62%, to 51,779.85, the S&P 500 added 85.93 points, or 1.14%, to 7,637.74 and the Nasdaq Composite rose 439.87 points, or 1.69%, to 26,418.30

U.S. stock indexes bounced back on Thursday as easing oil prices, dropping Treasury yields and solid labour data helped markets move beyond the central bank’s first interest rate hike in more than three years.

All three major US stock indexes closed sharply higher, driven by a broad, tech-led rally that put the Nasdaq out front.

The Dow Jones Industrial Average gained 317.95 points, or 0.62%, to 51,779.85, the S&P 500 added 85.93 points, or 1.14%, to 7,637.74 and the Nasdaq Composite rose 439.87 points, or 1.69%, to 26,418.30.

We’re seeing interest in the areas of the market that have been hit hard in anticipation of this Fed rate hike, said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. And people sort of stepping in, doing a little bit of buying ​on the pullback.

Crude prices declined, touching a one-week low after supply disruption fears were calmed by reports of Saudi oil moving through Oman.

Oil pared losses as ​the Middle East remained tense. Energy prices have soared since the onset of the US-Israeli war against Iran, feeding into broader international inflationary pressures.

On Wednesday, ⁠central bank policy makers voted unanimously to raise the Fed funds target rate for the first time since July 2023. The central bank’s statement said the it was dedicated to bringing about a “timelier return” to its 2% inflation goal, ​setting the table for more tightening this year.

The market is a bit relieved at the Fed’s coherence in that they all voted in the same way, said Ross Mayfield, investment ​strategy analyst at Baird in Louisville, Kentucky. Fed Chair Warsh re-emphasized the Fed’s independence.

Financial markets are currently pricing in a 53.1% likelihood of another 25-basis-point rate hike at the Fed’s next meeting in October, up from 27.2% a week ago, according to CME’s FedWatch tool.

When you have an oil shock this lengthy, it’s bound to start to ‌seep in ⁠prices all across the economy. It’s really the only major headwind facing the global economy right now, Mayfield added. And to get any sort of relief or resolve there is a tailwind for consumers, it’s a tailwind for corporates, and it allows the Fed to be less hawkish.