[U.S. Market Recap] Sept 17: Nasdaq Jumps 1.69% as All Three Indexes Rebound, Generac Soars 18% on Amazon Deal

Hey everyone, Hirokichi here. Today I’m looking back at the U.S. market session on Thursday, September 17. After the Fed’s first rate hike in three years hit stocks the day before, all three major indexes bounced back this session. The Nasdaq led the way with a 1.69% gain, supported by a pause in the bond-yield climb and cheaper oil. On the single-stock side, Generac (GNRC) jumped more than 18% in a single day after announcing a major deal with Amazon.

All Three Indexes Rebound, Nasdaq Jumps 1.69%

Let’s start with the major indexes.

As the table shows, the tech-heavy Nasdaq bounced the most, followed by the S&P 500 and then the Dow. The VIX (the market’s “fear gauge”) dropped to 15.44, down 12.82% from the prior close. That’s a sizable drop in investor anxiety, suggesting the market judged the previous day’s sell-off to have been overdone.

Why the strong rebound? In my view, two things were at play: the Fed decision itself was now “known,” removing the uncertainty that had weighed on stocks, and both long-term yields and oil prices calmed down at the same time. Markets generally hate uncertainty more than bad news itself, so a relief rally once the outcome is known is a fairly common pattern.

What Moved the Market: A Pause After the Fed Hike, and Cheaper Oil

At Wednesday’s FOMC meeting (September 16), the Fed raised its policy rate by 0.25 percentage points to a target range of 3.75%-4.00%, in a unanimous vote. It was the Fed’s first rate hike since July 2023 — three years. Fed Chair Kevin Warsh said “the plain fact is that inflation is too high and has been for too long,” signaling that one more hike could come before year-end. That comment sent long-term yields sharply higher the day before, with the 10-year Treasury yield briefly touching 5.01%, its highest level in 19 years.

This session saw some of that reverse. According to Investrade’s market data, the 10-year yield eased 0.059 points to 4.944%, and WTI crude fell to $100.41 a barrel (down $2.02). Tensions in the Middle East continue, with Iran-related instability and the shutdown of Saudi Arabia’s East-West pipeline, so the longer-term upward pressure on oil hasn’t disappeared — but this session saw a pause on reports of rising U.S. inventories. In my view, having both of the “inflation-stoking” factors — rates and oil — cool off at the same time gave investors the confidence to buy back into stocks.

In currencies, the dollar stayed firm against the yen. In New York trading, USD/JPY fell as low as 155.34 before closing back up at 156.11 (source: Zaikei Shimbun). Dollar buying stayed dominant even after the rate hike.

Economic data was broadly supportive for stocks too. Weekly jobless claims came in at 196,000, an improvement from the prior week’s 206,000 and below the consensus estimate of 208,000. The Philadelphia Fed’s business conditions index fell to 37.8 in September from 47.4 in August, but still beat the consensus estimate of 30.5 (source: Investrade Mid-Morning Look). On the other hand, August housing starts fell 2.6% from the prior month, missing expectations, a sign that rising mortgage rates are weighing on the housing market.

Notable Stocks: Generac Soars 18%, CoreWeave Falls 4%

Here are five stocks that saw particularly notable moves this session.

Looking at this chart, Generac’s gain clearly stands out from the rest. CoreWeave, on the other hand, was the only name in the red — a day where even stocks under the same “AI data center” umbrella went in opposite directions.

The biggest surprise was Generac (GNRC). The backup-generator maker announced a long-term agreement to supply backup generators for Amazon’s data centers, with a total contract value of up to $8 billion and roughly $2.4 billion in initial deliveries expected in 2027-2028. On top of that, Amazon also received a warrant to buy Generac stock. Several brokerages, including JPMorgan and Canaccord, raised their price targets, and Wells Fargo said the deal could give Generac “nearly 50% of Amazon’s diesel generator deployments.” Because AI data centers consume enormous amounts of power, this was seen as a landmark story in the broader “AI power” theme — who supplies the backup power for all that compute.

Nvidia (NVDA) closed up 2.54% at $219.34. Chip stocks broadly rebounded from the prior day’s slump, with the Philadelphia Semiconductor Index (SOX) up 3% for the session. Related names like Intel, Arm, Marvell, and Micron all rose together, a sign that confidence in AI-related capital spending remains intact.

CoreWeave (CRWV), on the other hand, fell 4.16% to $79.88, one of the few decliners of the day. The reason: the company announced a $3 billion convertible note offering along with an “at-the-market” program to sell up to 35 million additional common shares. It’s a fundraising move to expand AI cloud infrastructure, but it also means dilution for existing shareholders, which sent the stock lower. Trading volume came in about 176% above the three-month average — a heavily traded session. That’s a contrast to peers Nebius Group (NBIS), up 4.12%, and Iren (IREN), up 2.02%, showing that even among “AI infrastructure” names, how a company funds its growth matters a lot to investors.

Tesla (TSLA) rose 2.27% and Amazon (AMZN) rose 2.13%, both moving in line with the broader market rebound. For Amazon, some of that strength likely reflects investors crediting its data-center power strategy — as the buyer in the Generac deal mentioned above.

Sector and ETF Moves: Chips and Tech Lead, Financials and Energy Lag

By sector, Technology (XLK), Consumer Discretionary (XLY), and Materials (XLB) were among the top performers, with the chip-focused SOX index up 3%. Financials (XLF) and Energy (XLE) lagged behind (source: Investrade Mid-Morning Look). Goldman Sachs said its trading division’s near-term outlook looked a bit softer, and its stock fell for a second straight day.

For ETFs familiar to Japanese retail investors, broad S&P 500 funds like VOO and VTI likely tracked the index’s gain fairly closely. High-dividend ETFs like SPYD, HDV, and VYM, however, are more heavily weighted toward financials and energy, so they likely didn’t bounce back as much as Nasdaq-tracking QQQ — worth keeping in mind. Gold stayed a bit soft, closing at $4,380.60, down 0.16% on the day.

What to Watch in Japanese Stocks Today

Finally, here are three points on how this U.S. session might carry over into Japanese stocks, from my own perspective.

(1) A tailwind for semiconductor and AI names: With Nvidia and U.S. chip stocks broadly higher, Tokyo-listed chip names like Tokyo Electron and Advantest could see buying interest as well.

(2) Watch the Bank of Japan decision: Later tonight (Japan time), the BOJ will announce the results of its policy meeting, and the market widely expects a 0.25-point rate hike. With this coinciding with a pause in U.S. rate hikes, the BOJ’s move could have a significant impact on USD/JPY and export-related stocks — worth watching closely.

(3) Keep an eye on “AI power” names: As Generac’s surge shows, stocks tied to AI data-center power infrastructure have become a theme with global reach. Similar buying interest could extend to Japanese power-equipment and utility names, and it’s a space I’ll be watching too.

One note: some of the figures in this article, particularly oil prices and the 10-year yield, were still circulating as preliminary readings at the time of writing, so they may differ slightly from final confirmed values.

Let’s keep at it, slow and steady. Have a good day!

* This article is for informational purposes only and does not recommend any specific investment. Please make investment decisions at your own responsibility.

Previous day’s article here → [U.S. Market Recap] Sept 16: Dow Falls 631 Points After the Fed’s First Rate Hike in Three Years, Warsh’s Comments Rattle Wall Street
See how the Nikkei 225 moved this same session → [Nikkei Recap] Sep 17, 2026: Nikkei 225 Gains 213 Points to 64,136 as Defense Stocks Surge and Nintendo Jumps 4% on Tokyo Game Show

日本語版はこちら → 【米国株まとめ】9月17日はナスダック1.69%高で3指数そろって反発！FOMC利上げ後の安心感とジェネラック18%急騰を解説

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