Waller's Comments Lift US Stocks as Rate Hike Expectations Ease

The US stock market rose significantly on Thursday as investors reduced their expectations of rate hikes by the Federal Reserve. This change in sentiment came after Fed Governor Christopher Waller stated that he would support keeping interest rates steady if upcoming data shows a decline in inflationary pressures.

The S&P 500, Dow, and Nasdaq indices all rose at least 1 percent, with the Nasdaq benefiting from strong performances by AI-related megacap stocks known as the 'Magnificent Seven'.

Federal Reserve Governor Waller's comments led to a moderation in rate hike expectations for the September meeting, decreasing the likelihood to 50.4 percent from 63.2 percent on Wednesday.