Wall Street rallies as Fed's Waller eases rate hike fears
NEW YORK — Wall Street advanced on Thursday as investors curbed their rate hike bets after U.S. Federal Reserve Governor Christopher Waller said he would support holding the Fed funds target rate steady if data shows inflationary pressures are easing. All three major U.S. stock indexes were sharply higher, with the Nasdaq enjoying a boost from the "magnificent seven" group of AI-related megacap…
Wall Street experienced a rally on Thursday as investors reduced their concerns about potential interest rate hikes, following remarks from U.S. Federal Reserve Governor Christopher Waller. Waller stated that he would be open to keeping key interest rates unchanged if data indicated that inflationary pressures were easing. The three major U.S. stock indexes all gained significantly, with the Nasdaq benefiting from strong performance by the "Magnificent Seven" group of AI-related mega-cap stocks.
The Nasdaq, S&P 500, and Dow Jones Industrial Average were all on track for weekly gains. Waller's comments helped to moderate market expectations for rate hikes at the Fed's upcoming September meeting, reducing the probability to 50.4 percent from 63.2 percent the previous day, according to CME's FedWatch tool. The benchmark U.S. Treasury yield declined for the second consecutive session, dropping from its highest level since November 2023.
Rate-hike expectations had been on the rise in recent sessions, as investors awaited further guidance from the central bank.
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