US Stocks Rebound as Rate Hike Possibility Weakens

The US stock market rebounded in September, rising more than 1% after Federal Reserve Chairman Kevin Wash hinted at a rate hike. Wash's speech at Jackson Hole and concerns about inflation from oil prices weighed on both bond and stock markets.

However, the possibility of a rate hike weakened, leading to a recovery in stocks. The S&P 500 index rose 1.06% to 7747.71, while the Nasdaq Composite index surged 1.40% to close at 26,584.06.

The rebound was led by tech-heavy stocks, with Google and Meta rising 1.59% and 3.01%, respectively. Semiconductor stocks such as Nvidia and Micron also rose, while software company Snowflake soared 16.6% due to its 'earnings surprise.'

Christopher Waller, a Fed director, said that inflation is 'meaningfully exceeding the Fed's 2% target' but noted that some signs of disinflation are appearing.