Stock futures are little changed after major averages snap three-day losing streaks: Live updates - CNBC
U.S. stock markets rose significantly as Treasury yields retreated following comments from Fed Governor Christopher Waller. Investors are increasingly optimistic that the Federal Reserve may hold interest rates steady at the upcoming meeting.
Why it matters
Market sentiment is highly sensitive to interest rate policy, and this shift suggests a potential cooling of inflation-driven volatility.
Equities moved higher on Thursday, while Treasury yields pulled back, as investors grew hopeful that the Federal Reserve may leave interest rates unchanged this month.
The S&P 500 rose 1.06% to end at 7,747.71, while the Nasdaq Composite rose 1.4% to 26,584.06. The Dow Jones Industrial Average climbed 624.16 points, or 1.18%, to 53,686.11. It was the best day since Aug. 4 for the 30-stock index.
The benchmark 10-year Treasury note yield was last at 4.77%, declining after Federal Reserve Governor Christopher Waller said he'd be " inclined to support " holding rates steady barring any surprises in upcoming inflation data. On Wednesday, the yield hit its highest level since November 2023 .
Bets among fed funds futures traders that the central bank would raise rates in a couple weeks fell to 50.4% after his statement, according to the CME FedWatch tool . That's down from 63.2% a day ago.
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