Wall Street Rebounds as Waller Supports Rate Hold

Wall Street indices rose significantly on Thursday after Federal Reserve Governor Christopher Waller expressed support for keeping interest rates steady if inflationary pressures are easing.

Waller told Reuters that he would be inclined to hold key interest rates if upcoming data confirms price pressures are decreasing. However, he added that he would still support a rate hike if inflation fails to cool down.

The Fed's decision had a notable impact on financial markets, with the likelihood of rate hikes at the September meeting dropping from 63.2% to 50.4%, according to CME's FedWatch tool.

Major stock indexes, including the Dow Jones Industrial Average and S&P 500, closed at least 1% higher, while the Nasdaq Composite gained 1.40%. The benchmark U.S. Treasury yield also pulled back for the second straight session.