Stocks and Bonds Gain as Fed Rate Hike Chances Ease

The S&P 500, Dow Jones and Nasdaq 100 indices are all on the rise today, buoyed by a more dovish tone from the Federal Reserve. Fed Governor Christopher Waller's comments suggest underlying inflation is better than core numbers indicate, which could lead to the Fed holding interest rates steady at their September meeting. This has reduced the likelihood of a rate hike to 50% from 65% previously.

Nvidia CEO Jensen Huang dismissed a $3.5 billion MediaTek deal as not circular, casting doubt on the outlook for MSTR stock. Despite this, the market is finding support from US economic data, including stable jobless claims and an unexpectedly strong August ISM services index. However, some technology stocks are lagging, with Broadcom and HPE falling sharply.

Rising oil prices have added to inflation concerns, potentially prompting the Fed to keep raising rates.