{"id":5947,"date":"2026-09-04T01:09:28","date_gmt":"2026-09-04T01:09:28","guid":{"rendered":"https:\/\/thecapitalharbor.com\/index.php\/2026\/09\/04\/dow-closes-600-pts-higher-as-fed-rate-hike-bets-ease-and-stocks-rally\/"},"modified":"2026-09-04T01:09:28","modified_gmt":"2026-09-04T01:09:28","slug":"dow-closes-600-pts-higher-as-fed-rate-hike-bets-ease-and-stocks-rally","status":"publish","type":"post","link":"https:\/\/thecapitalharbor.com\/index.php\/2026\/09\/04\/dow-closes-600-pts-higher-as-fed-rate-hike-bets-ease-and-stocks-rally\/","title":{"rendered":"Dow closes 600 pts higher as Fed Rate hike bets ease and stocks rally"},"content":{"rendered":"
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US stocks rallied on Thursday as investors reduced expectations for a Federal Reserve rate hike this month following comments from Fed Governor Christopher Waller. <\/p>\n

The Dow Jones Industrial Average rose 1.18%, while the S&P 500 and Nasdaq Composite also gained more than 1%.<\/p>\n

Dow leads broad market rally as rate bets fall<\/h2>\n

The Dow climbed 627.37 points, or 1.18%, to close at 53,689.32, marking its best session since Aug. 4. <\/p>\n

The S&P 500 gained 81.67 points, or 1.07%, to 7,748.27, while the Nasdaq Composite advanced 366.39 points, or 1.4%, to 26,584.21.<\/p>\n

The benchmark 10-year Treasury yield pulled back to around 4.77% after reaching its highest level since November 2023 on Wednesday. <\/p>\n

The decline came as Waller indicated that he would favor keeping interest rates unchanged if upcoming data confirms that inflation pressures are easing.<\/p>\n

Fed funds futures traders subsequently lowered the probability of a rate hike at the Federal Reserve\u2019s September meeting to 50.4%, from 63.2% a day earlier, according to the CME FedWatch tool.<\/p>\n

The pullback in yields came despite elevated oil prices. <\/p>\n

West Texas Intermediate crude traded above $91 a barrel, while Brent crude remained above $95. Higher energy prices have recently contributed to concerns about inflation and the possibility of tighter monetary policy.<\/p>\n

The Japanese yen also strengthened sharply against the US dollar, gaining about 2% to 155.51 yen. The yen\u2019s rise contributed to broader declines in Treasury yields.<\/p>\n

AI stocks drive gains as Nvidia and Snowflake rally<\/h2>\n

Technology and AI-related stocks helped support the broader market advance. Nvidia shares rose<\/a> after the company announced a $12.9 billion agreement to acquire developer platform Hugging Face.<\/p>\n

The deal represents Nvidia\u2019s second-largest acquisition and expands its presence across the AI ecosystem. <\/p>\n

Meanwhile, Snowflake shares surged more than 20% <\/a>after the company reported better-than-expected second-quarter earnings and revenue and issued strong guidance.<\/p>\n

ServiceNow, Salesforce and Adobe also ended higher, adding to gains across the software sector.<\/p>\n

Broadcom moved in the opposite direction, falling 2%<\/a> after its latest quarterly results included a weaker-than-expected revenue forecast for the fiscal fourth quarter. <\/p>\n

The decline highlighted the differing reactions among companies linked to the ongoing AI investment cycle.<\/p>\n

The major indexes were on track for weekly gains following Thursday\u2019s advance. The Nasdaq also benefited from gains among the so-called Magnificent Seven group of megacap technology stocks.<\/p>\n

Jobs report next as investors watch inflation<\/h2>\n

Investors are now turning their attention to Friday\u2019s US employment report for further clues about the Federal Reserve\u2019s policy path. <\/p>\n

The Labor Department is expected to report that the US economy added 56,000 jobs in August, with the unemployment rate holding at 4.1%.<\/p>\n

Thursday\u2019s economic data was generally positive, with jobless claims remaining low and activity in the services sector accelerating. <\/p>\n

However, services input prices reached their highest level since October 2022, while the international trade gap widened 24.4%.<\/p>\n

Oil prices remained another potential source of inflation pressure. <\/p>\n

Elevated crude prices have contributed to concerns that inflation could remain persistent and limit the Federal Reserve\u2019s ability to ease monetary policy.<\/p>\n

Crypto-linked stocks also advanced as Bitcoin rebounded after two sessions of losses. Strategy, Coinbase Global<\/a> and Robinhood Markets posted sizeable gains alongside the broader recovery in digital assets.<\/p>\n

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The post Dow closes 600 pts higher as Fed Rate hike bets ease and stocks rally<\/a> appeared first on Invezz<\/a><\/p>\n

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