US Stocks Soar as Fed Governor Waller Eases Rate Hike Fears
US stocks surged on Thursday after Fed Governor Christopher Waller said he would favour keeping interest rates steady if upcoming data confirms that inflationary pressures are easing.
The Dow Jones Industrial Average jumped 627.37 points, or 1.18%, to 53,689.32, while the S&P 500 rose 81.67 points, or 1.07%, to 7,748.27. The Nasdaq Composite gained 366.39 points, or 1.40%, to 26,584.21.
The probability of a Fed rate hike at the September meeting fell to 50.4% from 63.2% a day earlier, according to CME's FedWatch tool. The benchmark US Treasury yield also fell for a second consecutive session after recently reaching its highest level since November 2023.
Nvidia gained after announcing it would buy developer platform Hugging Face for $12.9 billion, adding to its push into the artificial intelligence ecosystem. However, Broadcom fell after its fourth-quarter revenue forecast came in below expectations.
Investors now turn to Friday's employment report for a clearer signal on the Fed's next move. The Labor Department is expected to report that the US economy added 56,000 jobs in August, with the unemployment rate holding at 4.1%.