Wall Street's Resilient Rebound Amid Fed's Interest Rate Projections

Wall Street's main indexes partially recovered after recent declines driven by the Federal Reserve's unexpected interest rate projections. Rising U.S. Treasury yields put pressure on stocks, though bank equities benefited. Key price movements included declines in Micron and Lennar, while megacap stocks showed resilience.

Wall Street's stock indexes showed resilience on Thursday, bouncing back slightly after the Federal Reserve's recent projections surprised investors with fewer-than-expected interest rate cuts and higher inflation expectations. These developments initially led to the sharpest daily declines in the market since August.

The S&P 500 index was up by 0.3% during the session, erasing much of its earlier losses. The increase coincided with a significant rise in U.S. Treasury yields, which reached a fresh 6-1/2 month high of 4.57% following positive economic data reports. Banks saw a 1.3% rise, benefiting from the higher yields that enhance lender profitability.

In contrast, stocks like Micron and Lennar faced setbacks, with Micron plummeting 15.5% due to a forecast of disappointing quarterly revenue and profit, while Lennar dropped by 5.5% following its underwhelming fourth-quarter results. As interest rates take center stage, the market remains watchful for further economic influences.

(With inputs from agencies.)