US markets recover after Fed shock

After the recent setback from the Federal Reserve, the US stock market landscape showed recovery again on Thursday. The markets shrugged off the impact of the Fed's tight interest rate outlook and recorded gains across all major indices. The Dow Jones Industrial Average, the S&P 500, and the tech-heavy Nasdaq Composite all saw an increase of about 0.5 percent. Parallel to the recovery in the stock markets, the yield on ten-year US Treasury bonds continued its upward trend, rising to 4.58 percent for the first time since May. This development followed a turbulent Wednesday when the Fed reduced its expectations for interest rate hikes next year to just two. Fed Chairman Jerome Powell described the latest quarter-point rate decision as a close call, which was interpreted by the markets as a "hawkish cut," leading to one of the worst days for the S&P 500 and Nasdaq since the summer. Despite a year-to-date increase of over twelve percent in points, the Dow is in its longest losing streak in five decades. However, Thursday appeared promising for a possible trend reversal. Economic data was also positive, with an annual growth rate of 3.1 percent for the third quarter and a decrease in weekly initial jobless claims to 220,000.