Waller's Rate Hike Warning Triggers Relief Rally as Bitcoin Surges Past $80,000

US stocks rebounded on Thursday as Federal Reserve Governor Christopher Waller signaled he could back leaving interest rates on hold this month. This announcement led to a broad-based relief rally, with software and small-cap companies leading the bounce.

The yield on the 10-year Treasury note eased to 4.75%, down 4 basis points, while the dollar index slid to 99, its lowest level in nearly two weeks. The greenback's weakness sparked a surge in Bitcoin, which rose 4.6% to around $80,900.

The S&P 500 and Dow Jones Industrial Average both gained, with Tesla Inc. jumping 7.4%. The Nasdaq 100 climbed 1%, while the Consumer Discretionary Select Sector SPDR Fund led all sectors with a 1.8% gain, powered by Tesla's surge.