S&P 500 Rises 0.59% to 7,596 as Investors Buy Rate-Hike Dip

Yahoo Finance2 min read6 sources

Why is the S&P 500 up today?

The S&P 500 (.SPX) rose 0.59% to 7,596 on Thursday after investors bought the post-hike dip, following the Fed's first rate increase since 2023 and Wednesday's 631-point Dow plunge.

Key numbers

S&P 500 Thursday close	7,596+0.59%
Dow Jones Wednesday close	51,461.90-631 pts (-1.21%)
Nasdaq Composite Wednesday close	25,978.42-0.01%
10-Yr Treasury Yield intraday peak	5.025% (per [1])+47 bps since Aug 31
Fed benchmark rate after Wednesday hike	3.75%–4.00%+25 bps
S&P 500 avg post-first-hike return (Goldman Sachs)	+4% at 6 months / +9% at 12 monthsHistorical average

What happened

The S&P 500 (.SPX) rose 0.59% to 7,596 on Thursday after investors bought the post-hike dip, following the Fed's first rate increase since 2023 and Wednesday's 631-point Dow plunge. The Federal Reserve raised its benchmark rate 0.25 percentage points to 3.75%–4.00% on Wednesday, triggering a sell-off that knocked the Dow 631 points to 51,461. The 10-year Treasury yield — which shapes mortgage rates and stock valuations — hit an intraday peak of 5.025%, its highest level since July 2007 (per). Goldman Sachs data showing S&P 500 average gains of 4% at six months and 9% at twelve months after a first hike helped turn index futures green.

Why it matters

The S&P 500 bouncing back after the first rate hike matters because history is on investors’ side — rising borrowing costs do not automatically drag stock prices down. The Fed’s latest forecast (its “dot plot”) shows most officials expect at least one more rate increase in 2026, meaning higher mortgage rates, car loans, and credit card bills for everyday households. Where bond yields settle from here will decide whether Thursday’s rebound holds or fades.

Who this affects

Marketbullish Medium impact: Stock investors get a one-day reprieve; more rate hikes are still expected.
Companymixed Low impact: Rate-sensitive sectors like utilities and real estate face continued selling pressure.
Competitorsbullish Low impact: Dow and Nasdaq futures also turned green by Thursday’s market open.
Industrybullish Low impact: Banks and lenders typically benefit when interest rates move higher.

S&P 500 vs Dow Jones, Nasdaq, Russell 2000


S&P 500.SPX	7,551.81 → 7,596	-0.45%	+0.59%	+10.6%
Dow Jones.DJI	51,461.90	-1.21%	+0.2% (futures)	+8.5%
Nasdaq.IXIC	25,978.42	-0.01%	+0.5% (futures)	+14.5%
Russell 2000RUT	2,858.81	-0.42%	—	~20.8%

As of 2026-09-17

How we got here

Jul 26, 2023
Fed's last rate hike before this cycle — three years before this week's move.
Aug 31, 2026
Chair Warsh signals September hike at Jackson Hole; 10-yr yield at 4.62%.
Sep 15, 2026
10-yr Treasury yield breaks 5% for the first time since July 2007.
Sep 16, 2026
Fed hikes 25 bps to 3.75%–4.00%; Dow drops 631 points in a single session.
Sep 17, 2026
S&P 500 gains 0.59% to 7,596 as investors buy the post-hike dip.