The answer was A. After weeks and days anticipating the increase, the verdict is out and markets have also reacted strongly.
The FED was unanimous of its decision and its the first step to further increases. As of 18 September 2026, the Philadelphia Semiconductor Index rose another 2.8%, its fourth consecutive gain, and finally broke above its 50-day moving average after that level had acted as resistance since July. The backdrop is still unusually volatile, the SOX had fallen about 21% in July, so some of what we are seeing is recovery from a major drawdown rather than a fresh move from a stable base. Next to watch : Micron earnings on 30 Sep
Markets Rebound Day After Rate Hike — What's Driving the Rally?
Stocks took back Wednesday's Fed day and more: QQQ +1.73% to $716.92, SPY +1.13% to $762.60, the S&P 500 +1.14% to 7,637.76, against Wednesday's 0.45% decline. The lift came from outside the Fed. Weekly jobless claims unexpectedly fell, which says the labor market is not cooling the way the rate path assumes, and oil kept sliding, easing inflation pressure. Yields fell and megacap tech led. The uncertainty everyone waited on is behind the market now. But the dot plot still points to one more hike this year, and only the hike already delivered is in the price. What is the market betting on?
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