US Stocks Surge on Easing Rate Hike Expectations

The US stock market rallied on Thursday as Treasury yields fell and investors became more confident that the Federal Reserve would keep interest rates unchanged this month.

According to data, the S&P 500 gained 1.06% to 7,747.71, while the Nasdaq Composite rose 1.4% to 26,584.06.

The Dow Jones Industrial Average climbed 624.16 points, or 1.18%, to 53,686.11, its strongest session since August 4.

Federal Reserve Governor Christopher Waller indicated he would support keeping rates steady if inflation continued to move towards the Fed’s 2% target.

However, he left open the possibility of a rate rise if upcoming inflation data proved stronger than expected.

The probability of a 25-basis-point rate increase this month fell to 50.4%, from 63.2% a day earlier and close to 70% earlier in the week.

Treasury yields eased in response, with the US 10-year yield falling to around 4.77% after reaching its highest level since November 2023 on Wednesday.