US stocks extend gains as yields ease and Waller backs rate-hike pause
US stocks rose on Thursday as bond yields stopped climbing, supporting credit-sensitive sectors. S&P 500 and Dow rose over 1% and Nasdaq 100 gained 0.8%, with chip producers lagging and Tesla up 7%.
US stocks swung higher on Thursday as bond yields halted their surge and supported credit-sensitive sectors.
The S&P 500 and the Dow rose over 1%, while the Nasdaq 100 gained 0.8% as chip producers underperformed.
Fed Governor Waller signaled that a rate hike is not warranted should underlying inflation continue to slow, a reversal from the statements flagging inflationary risks from earlier remarks.
Consequently, Treasury yields eased despite signs of a fresh intervention to halt the decline of the yen by Tokyo.
Credit-sensitive software companies gained with Microsoft, Palantir, and Meta adding more than 3%, while risk-sensitive Tesla soared 7%.
On the other hand, Broadcom fell 3% despite posting a 221% annual growth in revenue in its last fiscal quarter, another chip producer that failed to meet the higher end of estimate ranges.
Meanwhile, Hewlett Packard Enterprises fell 4% after its results fell short of expectations.