U.S. stocks climbed Thursday as investors grew hopeful the Federal Reserve would leave interest rates unchanged at its next meeting, following remarks from Federal Reserve Governor Christopher Waller. The Dow Jones Industrial Average advanced 635 points, or 1.2%, according to CNBC, which noted the move would mark the index's strongest single-session performance since Aug. 4. The S&P 500 added 1% and the Nasdaq Composite climbed 1.3%. The rally came after Waller said he would be inclined to support holding rates steady, so long as upcoming inflation data did not produce surprises. The 10-year Treasury yield fell to around 4.75% after his remarks, pulling back from its highest level since November 2023. The share of fed funds futures traders pricing in a rate hike at the central bank's meeting in a couple of weeks fell to 50.4% after Waller's statement, down from 63.2% a day earlier, according to CNBC, citing the CME FedWatch tool. A rise in the Japanese yen also contributed to the drop in Treasury yields, with the yen trading 2% stronger against the dollar at 155.36. The broad S&P 500 rally included all but two of its sectors, with consumer stocks leading gains. Snowflake stock surged more than 20% after the company topped second-quarter earnings and revenue estimates and offered an upbeat outlook. Broadcom stock fell 4% after the company paired its latest quarterly results with a fiscal fourth-quarter revenue forecast that fell short of what analysts had anticipated. Oil prices continued their climb, with West Texas Intermediate crude futures trading 0.5% higher at above $91 per barrel and Brent futures above $95, as tensions in the Middle East outweighed comments from President Donald Trump that he did not expect recent U.S.-Iran fighting to last long.
Broadcom IncBroadcom's fiscal Q4 revenue forecast fell short of analyst expectations, causing shares to drop 4%.
Snowflake Inc.Snowflake topped Q2 earnings and revenue estimates and offered an upbeat outlook, sending shares up over 20%.
