S&P 500 gains 1.1% as easing bond yields lift US stocks

  • US stock indices closed higher Thursday as bond yields stopped rising sharply.
  • The S&P 500 rose 1.1%, while the Dow gained 624 points.
  • Fed Governor Waller said slowing inflation would not warrant a rate hike.

US stocks closed higher Thursday after bond yields halted their recent surge, supporting credit-sensitive sectors. The S&P 500 rose 1.1%, the Dow gained 624 points and the Nasdaq advanced 1.2%. Fed Governor Waller said a rate hike would not be warranted if underlying inflation continues to slow, a shift from his earlier emphasis on inflation risks, after which Treasury yields eased. Software shares rallied, led by Oracle, Palantir, Meta and Microsoft. Chipmakers were mixed: Nvidia and Intel rose 1.8% each, while Broadcom fell 2.7% despite reporting 221% annual revenue growth in its latest fiscal quarter. Hewlett Packard Enterprise gained 5% despite results missing expectations, while JPMorgan, Goldman Sachs and Morgan Stanley helped support the Dow.

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