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Stocks rose on Thursday, while Treasury yields fell as investors grew hopeful that the Federal Reserve would keep interest rates on hold this month.
of S&P500 It rose 1.06% to end at 7,747.71. Nasdaq Composite It rose 1.4% to 26,584.06. of Dow Jones Industrial Average It rose 624.16 points (1.18%) to 53,686.11. This was the best day for the 30-stock index since August 4th.
benchmark 10 year treasury Treasury yields last fell to 4.77% after Federal Reserve President Christopher Waller said he “supports” keeping interest rates on hold unless there are any surprises in future inflation data. On Wednesday, yields hit their highest level since November 2023.
After his comments, the opinion among federal funds futures traders that the central bank would raise rates within the next few weeks fell to 50.4%, according to the CME FedWatch tool. This was down from 63.2% the previous day.
Waller’s comments, coupled with a sharp rise in the yen, provided broader support for lower yields and provided market momentum even as oil prices remained high on Thursday. West Texas Intermediate Crude Oil Futures Brent futures rose 0.32% to settle at $91.30 per barrel, while Brent futures fell 0.12% to $95.52.
Rising oil prices have recently put upward pressure on U.S. Treasury yields as investors worry that rising energy prices will fuel inflation and force the Federal Reserve to raise interest rates. But U.S. yields were already under pressure on Thursday before Waller’s remarks, as the Japanese yen strengthened against the U.S. dollar.
Although there was some relief in yields on Thursday, CFRA Research’s Sam Stovall doesn’t think the market is out of the woods, telling CNBC that rising interest rates could remain a “hurdle for investors to overcome” if oil prices remain “stubbornly high.”
“Fed Chairman Steve Warsh has told us that he cares more about inflation than the jobs report, so even if we get a weak jobs report tomorrow, that probably won’t change his position. If we get strong numbers, that could sort of confirm his concerns.” “I can’t say that everything is cleared.”
snowflake Shares soared more than 16% on a positive note after the company reported better-than-expected second-quarter earnings and sales and issued strong guidance. vice versa, broadcom Sales fell nearly 3% following its latest quarterly results, and the company gave disappointing earnings guidance for its fiscal fourth quarter.
