Tech Stocks Fuel Wall Street Rally as Bond Yields Stabilize
The US stock market closed higher on Thursday, marking a rally led by tech stocks as bond yields eased further. The S&P 500 rose 1.1%, while the Dow Jones Industrial Average gained 1.2% and the Nasdaq composite closed 1.4% higher.
The recent run-up in bond yields has stabilized, with the yield on the 10-year Treasury dropping to 4.77% from 4.79% late Wednesday. The Fed's upcoming policy meeting is a key focus for investors, with Federal Reserve Governor Christopher Waller indicating that if inflation data shows cooling, he would consider keeping interest rates unchanged.
Big tech companies like Microsoft, Apple, and Meta led the rally, with Nvidia rising 1.8% after announcing its $13 billion acquisition of AI platform Hugging Face. However, not all tech companies fared well, with Broadcom's stock falling 2.7% despite beating earnings estimates.