As dovish (favoring monetary easing) remarks by senior Federal Reserve (Fed) officials continued, the three major U.S. stock indexes in New York all closed higher on the 3rd (local time).
On the day, the Dow Jones Industrial Average finished at 53,686.11, up 624.16 points (1.18%) from the previous session. The Standard & Poor's (S&P) 500 rose 81.11 points (1.06%) to 7,747.71, and the tech-heavy Nasdaq composite gained 366.23 points (1.40%) to 26,584.06.
As dovish comments from senior Fed officials continued, the market's caution over a rate hike in September eased. Fed Governor Christopher Waller said that if upcoming inflation data confirm that price pressures are easing, he would be willing to support holding the benchmark rate steady.
A day earlier, John Williams, president of the New York Federal Reserve Bank, said the recent surge in U.S. Government Bonds yields was not a sign of market dysfunction but a result of a strong economy, and noted that it is necessary to watch price trends carefully.
According to the Chicago Mercantile Exchange (CME) FedWatch, the probability of the Fed keeping the benchmark rate unchanged in September implied by the fed funds futures market rose to 49.5% from 36.8% a day earlier.
U.S. Government Bonds yields fell for a second straight day. The 10-year U.S. Treasury yield, a benchmark for the global bond market, was transacted at 4.761% as of 3 p.m., down 3 bp (1 bp = 0.01 percentage point) from the previous session. The 2-year U.S. Treasury yield, sensitive to monetary policy, fell 5 bp to 4.332%.
By stock, mega-cap tech and software names tied to artificial intelligence (AI) were strong. Nvidia rose 1.80% on news it would acquire the AI model-sharing platform "Hugging Face."
Software company Snowflake surged 16.55% after issuing a strong annual revenue outlook, lifting investor sentiment across the software sector.