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Wall Street Rallies as Rate Hike Fears Ease; Nasdaq Climbs 1.4%
Technology Services · Internet Software/Services · yonhap_finance · 2026-09-03
U.S. stocks surged over 1% as cooling Treasury yields and dovish comments from Federal Reserve officials bolstered investor sentiment regarding interest rates.
What Happened
Market Rally: Major U.S. stock indices closed more than 1% higher as the recent spike in Treasury yields moderated and Federal Reserve officials signaled a more cautious approach to future rate hikes. The Dow, S&P 500, and Nasdaq all posted solid gains, reflecting a broad recovery in risk appetite.
Monetary Policy Outlook: Fed Governor Christopher Waller stated that he would support keeping interest rates steady if inflation data shows signs of cooling, significantly easing market concerns over a September hike. Consequently, the probability of a rate freeze, as tracked by the CME FedWatch tool, rose sharply, providing a tailwind for equities.
Corporate Performance: AI-focused technology stocks led the market, with Snowflake surging over 16% following a strong annual revenue forecast. Conversely, Broadcom shares fell after the company issued a fourth-quarter revenue outlook that failed to meet high market expectations for AI infrastructure demand.
Upcoming Data: Investors are now turning their attention to the upcoming Labor Department employment report scheduled for release on the 4th. Analysts suggest that a 'Goldilocks' jobs report could further alleviate rate hike anxieties and help push Treasury yields lower, potentially supporting further stock market gains.