US MARKET CLOSE | Dow, S&P 500 and Nasdaq All Gain Over 1% as Waller's Dovish Remarks Lift Sentiment

U.S. stocks closed sharply higher on Thursday, with all three major indexes rising more than 1% as Treasury yields eased and investors grew optimistic that the Federal Reserve could hold rates steady this month, according to Sina Finance. The Dow Jones Industrial Average rose 624.16 points, or 1.18%, to 53,686.10; the S&P 500 gained 81.11 points, or 1.06%, to 7,747.71; and the Nasdaq climbed 366.23 points, or 1.40%, to 26,584.06. The "Magnificent Seven" rose across the board, with Tesla up more than 5%, Meta more than 3%, Microsoft more than 2%, and Google, Amazon, Nvidia and Apple each gaining more than 1%. Crypto-related stocks strengthened, with Strategy up more than 17% and Circle more than 16%. Gold mining stocks advanced, as Gold Fields rose more than 7%, Harmony Gold more than 6% and Kinross Gold more than 4%. The benchmark 10-year Treasury yield was last at 4.77%, after Fed Governor Christopher Waller said he was "inclined to support" holding rates steady unless upcoming inflation data surprised. The yield hit its highest level since November 2023 on Wednesday. According to the CME FedWatch tool, futures traders' bets on a rate hike in two weeks fell to 50.4% after Waller's remarks, down from 63.2% the prior day. Waller's comments, along with a sharp appreciation of the yen, supported a broader pullback in yields and provided some momentum for the market, even as oil prices remained elevated on Thursday. At the close, New York Mercantile Exchange light crude for October delivery rose 28 cents to settle at $91.30 a barrel, up 0.32%, while London Brent crude for November delivery fell 11 cents to settle at $95.52 a barrel, down 0.12%. Recent oil price gains have put upward pressure on Treasury yields, as investors worry that high energy prices will push up inflation and force the Fed to raise rates. However, before Waller's comments, U.S. Treasury yields had already come under pressure from a sharp rebound in the yen against the dollar. Despite the pullback in yields on Thursday, CFRA Research's Sam Stovall said the market is not yet out of the woods. If oil prices "stubbornly stay high," higher rates could still be "an obstacle investors must overcome." Snowflake surged more than 16% on Thursday after reporting better-than-expected second-quarter earnings and revenue and issuing strong guidance. By contrast, Broadcom fell nearly 3% after its latest quarterly results, as its fourth-quarter revenue guidance disappointed.