U.S. and Asian stocks climb as Fed hike odds fall - UK gilt yield eases

Sep 3, 2026 06:35 (19d ago)

U.S. and Asian equities rose as Treasury yields eased, the pound recovered above $1.35 and the UK 10-year gilt yield fell to 5.15%.
The Dow gained 624.16 points to 53,686.11, while reported September Fed hike odds fell from roughly 63%-65% toward 50%.
Investors awaited the August U.S. payrolls report and Chinese data as markets fully priced a BoE hike by year-end and another by March 2027.

U.S. and Asian equities advanced as Treasury yields eased and investors reduced expectations for a September Federal Reserve rate increase, while the British pound recovered above $1.35 and the UK 10-year gilt yield fell to 5.15%. Federal Reserve Governor Christopher Waller said he could support keeping the federal funds target range at 3.5% to 3.75% unchanged at the Sept. 15-16 Federal Open Market Committee meeting if incoming data confirm that inflation is easing. Market-implied September hike odds fell from roughly 63%-65% toward 50%, although supplied CME FedWatch snapshots ranged as high as 66.2%. Bank of England Chief Economist Huw Pill said raising rates now could reduce the risk of sharper tightening later to contain inflation, while markets fully priced a BoE rate increase by year-end and expected another by March 2027. Investors awaited the August U.S. nonfarm payrolls report and Chinese trade and inflation data while monitoring energy prices, fiscal concerns and Bitcoin near $81,000.

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