US stocks bounced back sharply on Thursday, with technology shares leading a broad rally as easing oil prices and lower Treasury yields offered investors some relief after the Federal Reserve raised interest rates for the first time in more than three years, Reuters reports. 50.

38. The Nasdaq led the gains as investors returned to technology stocks and other parts of the market that had come under pressure ahead of the Fed's rate decision.

The rally also reflected some relief from falling oil prices and lower Treasury yields, which helped ease concerns over the impact of higher borrowing costs." 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." Oil retreat offers some reliefOil prices fell to a one-week low after reports of Saudi crude moving through Oman helped ease immediate concerns over supply disruptions, Reuters reported.

Crude later pared some of its losses as tensions in the Middle East remained elevated. Energy prices have surged since the start of the US-Israeli war against Iran, adding to inflationary pressures and creating another challenge for the global economy.

The pullback in crude prices, however, gave equity investors some breathing room. The CBOE Market Volatility Index, widely known as the fear index, also touched its lowest level in more than a week as oil prices eased."

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," said Ross Mayfield, investment strategy analyst at Baird.

" 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." Fed hike keeps rate concerns aliveThe rally came a day after Fed policymakers unanimously raised the federal funds target rate, marking the first increase since July 2023.

The central bank said it was committed to achieving a "timelier return" to its 2% inflation goal, leaving the door open to further tightening this year. 2% a week earlier, according to CME's FedWatch tool.

Fed Chair Kevin Warsh said the US economy remained strong and that restoring price stability need not hurt the labour market. Weekly jobless claims also pointed to continued strength, with initial claims falling to levels near those seen in 1969, according to the Reuters report."