Waller's Comments Boost US Stocks as Rate Hike Bets Ease
US stocks saw a significant surge on Thursday as investors scaled back their bets on interest rate hikes following comments from Federal Reserve Governor Christopher Waller. He stated that he would support keeping the Fed funds target rate steady if data shows inflationary pressures are easing.
The S&P 500 rose by 1.1 percent, reaching $7,478, while the Dow jumped 1.2 percent to $53,686. The Nasdaq also gained 1.4 percent to reach $26,584.
CME's FedWatch tool showed that the likelihood of a rate hike at the September meeting decreased to 50.4 percent from 63.2 percent on Wednesday, following Waller's remarks.