US stocks today: NaS&P 500 rise as Fed's Waller signals openness to holding rates steady

Wall Street traded higher on Thursday after Federal Reserve Governor Christopher Waller said he could support keeping interest rates unchanged this month if incoming inflation data shows that price pressures are continuing to ease, according to Reuters report.

At 9:34 a.m. ET, the Dow Jones Industrial Average was up 0.74%, while the S&P 500 gained 0.54% and the Nasdaq Composite added 0.61%.

Waller's comments offered investors some relief at a time when markets are weighing the Fed's next move alongside renewed geopolitical risks. Still, the rally remained measured as traders continued to price a meaningful possibility of a rate hike and watched oil prices for signs that the Middle East conflict could add to inflation.


Waller said his decision on monetary policy would depend heavily on the August inflation data.

"My decision on the appropriate stance of policy will be heavily influenced by what we learn about August inflation," Waller said in remarks at a Reuters NEXT Newsmaker event in Washington. "If there is continued progress toward our 2% goal, then I am willing to support holding the policy rate at its current level."

His comments helped push back against expectations of another rate increase, although markets were still pricing a nearly 48% chance of a hike this month, according to the CME FedWatch tool. Waller also cautioned that rates may need to rise if inflation proves more persistent.

Investors are now turning to Friday's payrolls report for further clues on the Fed's path. But the data comes against a backdrop of competing risks, with inflation remaining a key concern and geopolitical tensions threatening to push energy prices higher.

Brent crude futures rose 1.31% to 96.88 on Thursday, extending gains for a fourth straight session.

"Oil has rebuilt some geopolitical premium, creating another potential inflationary headache at a time when markets are already debating whether U.S. rates need to move higher," said Daniela Hathorn, senior market analyst at Capital.com.

The market's gains were also being shaped by sharp moves in individual stocks. Broadcom fell 5.26% after its fourth-quarter revenue forecast failed to meet Wall Street's lofty expectations, highlighting the high bar facing companies tied to the artificial intelligence investment boom.

Snowflake, meanwhile, jumped 25.17% after forecasting strong annual revenue, lifting sentiment across software stocks. ServiceNow gained 5.43%, while Salesforce and Adobe rose 3.14% and 3.62%, respectively.

"I'm expecting a pretty crazy September. It's just roller coaster season," said Kim Forrest, chief investment officer at Bokeh Capital Partners.

She said volatility ahead of the midterms and potentially thinner liquidity could leave investors more prone to sharp market swings.

With geopolitical risks clouding the outlook and few major earnings catalysts on the horizon, investors may have limited reasons to push stocks significantly higher this month. September has historically been a volatile period, with nine of the 40 worst declines in the S&P 500's history occurring during the month, according to eToro analyst Jakub Rochlitz.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)