Wall Street closed sharply higher on Thursday, pulled up by tech and discretionary stocks. Markets recovered, led by a broad tech-based rally as softer oil, lower Treasury yields and strong jobs data eased Fed rate-hike concerns. All of the three benchmark indexes ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) added 316.14 points, or 0.6%, to close at 51,778.04. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative.

The tech-heavy Nasdaq Composite jumped 439.87 points, or 1.7%, to close at 26,418.3.

The S&P 500 rose 85.95 points, or 1.1%, to close at 7,637.76. Nine of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Utilities Select Sector SPDR (XLU) advanced 2.2%, 1.4% and 0.9%, respectively, while the Financials Select Sector SPDR (XLF) declined 0.1%.

The fear gauge CBOE Volatility Index (VIX) decreased 12.8% to 15.44. A total of 17.6 billion shares were traded on Thursday, higher than the last 20-session average of 15.4 billion. Advancers outnumbered decliners by a 2.38-to-1 ratio on the NYSE and by a 2.21-to-1 ratio on the Nasdaq.

Wall Street Rebounds as Investors Look Beyond Fed Hike

Wall Street rebounded on Thursday as investors looked beyond the Fed’s first interest rate hike in more than three years. Easing oil prices and declining U.S. Treasury yields helped relieve concerns over inflation and borrowing costs. Solid labor-market data also strengthened confidence in the U.S. economy, helping investors absorb the impact of the Fed’s 25-basis-point rate increase announced Wednesday. The central bank’s move had triggered a sharp sell-off as investors assessed its implications for economic growth and future monetary policy. Oil prices declined about 2%, while the 10-year Treasury yield fell roughly 5 basis points to 4.96%, easing inflation fears and borrowing-cost concerns and supporting broader investor sentiment.

Technology and other growth-sensitive stocks benefited from lower Treasury yields, which improved the appeal of equities relative to bonds. Meanwhile, easing energy prices reduced some inflationary pressure. Investors continued to focus on economic data and signals from the Fed for clues about the path of interest rates.

Consequently, Advanced Micro Devices, Inc. (AMD Quick QuoteAMD - Free Report) and Intel Corporation (INTC Quick QuoteINTC - Free Report) jumped 6.4% and 7.7%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

For the week ended Sept. 12, initial jobless claims were 196,000, a decrease of 10,000 from the previous week's unrevised level of 206,000. The four-week moving average was 203,250, a decline of 2,750 from the previous week's unrevised average of 206,000.

Continuing claims during the week ending Sept. 5 were 1,730,000, a decrease of 39,000 from the previous week's revised level. The previous week's level was revised down by 5,000 from 1,774,000 to 1,769,000. The four-week moving average was 1,761,250, a decrease of 16,500 from the previous week's revised average. The previous week's average was revised down by 1,250 from 1,779,000 to 1,777,750.

Per the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, housing starts in August came in at a seasonally adjusted annual rate of 1,275,000. The number for July was revised up to 1,309,000 from the previously reported 1,239,000. Building Permits for August came in at 1,394,000. The number for July was revised down to 1,433,000 from the previously reported 1,443,000.

Per the National Association of Realtors, pending home sales for August increased 0.3%. The number for July was revised down to a fall of 2.6% from the previously reported fall of 2.3%.