[New York Stock Exchange] All Major Indexes Rise Following Fed Governor Waller's Rate Comments

10-Year Treasury Yield Drops to Around 4.75%
International Oil Prices Rise, Surpassing $90 per Barrel

As Christopher Waller, a member of the Federal Reserve Board of Governors, hinted at the possibility of a rate pause at the September Federal Open Market Committee (FOMC) meeting, all three major U.S. stock indexes were on the rise in New York on September 3 (local time). Easing expectations of a rate hike also led to a fall in the yield on the U.S. 10-year Treasury note.

At the New York Stock Exchange (NYSE), as of 9:55 a.m., the Dow Jones Industrial Average was trading at 53,488.60, up 426.65 points (0.80%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, was up 46.36 points (0.60%) to 7,712.96, and the Nasdaq index, which is heavy with technology stocks, was up 209.67 points (0.77%) to 26,420.50.

New York Stock Exchange. New York (USA) - Special Correspondent Yoonju Hwang

On this day, the market responded positively to Waller's comments on interest rates, resulting in increased risk appetite among investors. The yield on the U.S. 10-year Treasury note, which had reached its highest level since November 2023 the previous day, also receded to around 4.75%.

At a Reuters event, Waller stated, "If progress toward the Fed's 2% inflation target continues in the August price data, I would be willing to support holding the policy rate steady at its current level."

However, he also suggested that if inflation were to accelerate again, the Fed could consider raising rates. The current federal funds rate in the U.S. stands at 3.50-3.75% per year. Waller pointed out that the current interest rate level is "only slightly restraining" aggregate demand and left open the possibility of additional tightening if inflation were to accelerate once more.

Following Waller's comments, market expectations for a rate hike in September diminished. According to the CME FedWatch Tool of the Chicago Mercantile Exchange, the probability of a rate increase this month, as reflected in the federal funds futures market, dropped to 54.6% from 63.2% the previous day.

Yields on government bonds also declined. The U.S. 10-year Treasury yield has been trading around 4.75% on this day. During the previous session, it had surged as high as 4.818%, marking the highest level since November 2023. The 2-year yield also rose to as high as 4.41% the previous day, the highest since January 2025.

International oil prices, which have been one of the main factors behind the rise in bond yields, continue to climb. As military tensions between the U.S. and Iran have flared up again, West Texas Intermediate (WTI) futures for October delivery are up 1.00% from the previous day to $91.92 per barrel on the New York Mercantile Exchange. Brent crude for November delivery is at $96.30 per barrel on the ICE Futures Exchange, up 0.61% from the prior session.

Rising oil prices are a key variable for the Fed's future monetary policy. If surging energy prices spill over into broader consumer prices, there could be increased pressure for the Fed to raise rates again. Waller stated that, so far, the rise in energy prices caused by the Middle East war has not largely spread to prices of other goods.

By stock, Snowflake, a cloud data platform company, is soaring by 21.2% from the previous day after reporting results that exceeded market expectations and issuing a strong outlook. Meanwhile, Broadcom is down 6.28% from the prior session after offering revenue guidance that fell short of market expectations.

The August U.S. employment report to be released on the 4th, as well as next week's Consumer Price Index (CPI), are expected to provide clues about the Fed's rate decision direction this month.

This content was produced with the assistance of AI translation services.