Dow jumps 600 points as Waller hints at possible rate hold
U.S. stocks settled higher Thursday, with the Dow gaining more than 600 points after Fed Governor Christopher Waller signaled he could back leaving rates on hold this month. Fear & Greed Index improved but stayed in “Fear.”
The CNN Money Fear and Greed Index improved overall, but remained in the “Fear” zone on Thursday. U.S. stocks finished higher on Thursday, with the Dow Jones index gaining more than 600 points during the session after Federal Reserve Governor Christopher Waller signaled he could back leaving interest rates on hold this month. The ISM Services PMI rose to 55.4 in August from 54.1, above the 54.3 consensus and the strongest services expansion in six months.
The prices-paid subindex climbed to 72.6, its highest in four years. U.S. initial jobless claims increased by 2,000 to 206,000 in the fourth week of August, versus estimates for 205,000. The U.S.
trade deficit widened to $88.6 billion in July from $71.1 billion in June, compared with estimates for a $90 billion deficit. Snowflake Inc. shares jumped around 17% on Thursday after the company reported better-than-expected second-quarter financial results. Broadcom Inc.
shares fell around 3% after the company reported better-than-expected financial results for the third quarter of Fiscal 2026, but issued weak guidance for the fourth quarter. Most sectors on the S&P 500 finished Thursday in positive territory, led by communication services, consumer discretionary and financial stocks. Energy and materials stocks moved against the broader market and ended the session lower. The Dow Jones closed up about 624 points at 53,686.11 on Thursday.
The S&P 500 rose 1.06% to 7,747.71, while the Nasdaq Composite gained 1.40% to 26,584.06. At a current reading of 35, the index remained in the “Fear” zone on Thursday, compared with a prior reading of 33. The Fear & Greed Index is a measure of market sentiment based on seven equal-weighted indicators and ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.