US Stock Market: Nasdaq Jumps 440 Pts, DJIA & SP500 Gains; But Futures Fall On Friday; Wall Street Outlook

The US stock market witnessed a sharp rally overnight due to chipmaker stocks that recorded a strong buying trend. The Nasdaq Composite outperformed with nearly 2% gains, while the Dow Jones and S&P 500 indexes also rallied around 1% each. Among the top performers included Nvidia, Micron, Intel and AMD. Wall Street also calmed on the losing streak after the US Federal Reserve decided to hike interest rates by 25 basis points for the first time in 3 years. However, the start of Friday has been bearish for US stock futures, signalling a cautious tone in the market.

Dow Jones + Nasdaq + S&P 500 Indexes

Overnight, the Dow Jones Industrial Average or DJIA gained by 316.14 points or 0.61% to close at 51,778.04. The S&P 500 index surged by 85.95 points or 1.14% to close at 7,637.76. Meanwhile, the Nasdaq Composite outperformed with 439.88 points or 1.7% rally to finish at 26,418.30. Decline in crude oil prices and bond yields improved risk appetite for Wall Street on September 17, 2026. Also, buying momentum in chip stocks lifted indices.

Chipmakers led the gains, extending their recovery after concerns over AI safety earlier in the week sparked doubts about AI-related capital spending. Strong performances came from Micron (5.5%), Nvidia (2.5%), Intel (7.7%), AMD (6.4%), and SanDisk (6.2%). Stocks benefited from lower oil prices that eased inflation worries and helped Treasuries rally across the curve, with the US 10-year yield falling to around 4.93% after topping 5% earlier this week. Wall Street also rallied in relief after the Federal Reserve delivered a widely expected rate hike, though policymakers signalled further tightening to curb inflation, as per Trading Economics.

US Stock Futures Today, September 18, 2026

However, US stock futures are trading in red in the early hours of Friday, September 18, 2026. At the time of writing, the Dow Jones futures traded at 51,804, down marginally, while the S&P 500 futures slipped 6.50 points to trade at 7,633.50 and Nasdaq 100 futures dipped by 63 points to trade at 29,383.75, underperforming the most.

Investors will continue to digest the implications of the Fed's first rate hike in more than three years today, while geopolitical tensions, yields, and oil prices remain in focus, as per Charles Schwab's note.

In the early hours of Friday, crude oil prices traded lower by 1% but still remained above $100 mark. ThE US WTI crude futures dropped 1% to trade around $101 per barrel and Brent crude declined by 1% to trade around $104 per barrel. Natural gas and gasoline slipped by 1-2%.

On the other hand, US 10-year treasury yield slipped to $4.95% on Thursday, pulling away from the 5.04% which was at its highest level since 2007. As per Trading Economics, the decline came after the Fed raised interest rates and Chair Warsh reaffirmed the central bank's commitment to tackling inflation, reassuring investors about its policy credibility and determination to contain price pressures.

US Stock Market Outlook Ahead

Despite the marginal pullback in oil prices, continuing geopolitical uncertainty and the conflict's expansion into new fronts remain a major overhang for global markets. Investors are likely to closely monitor developments in the Middle East, as any renewed escalation could quickly reverse the recent decline in crude prices and add to market volatility, as per Ponmudi R, CEO of Enrich Money.

In Schwab's view, with a light earnings and economic calendar through the end of the week, attention will likely remain on the path forward for rates amid elevated Treasury yields, oil prices, and geopolitical tensions.

"From a bullish perspective, while oil prices have pushed back higher over the past six weeks, the consumer remains resilient, and bond yields are higher but not 'running away'," said Nathan Peterson, director of derivatives research and strategy at SCFR. "However, from a bearish near-term trading perspective, the most important leading indicator is the state of the Iran war in my view, and it doesn't appear to be going very well."

There are no economic data and earnings announcements on Friday.

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