Dow rises 635 points on Fed rate-hold hopes, Sep. 3, 2026

Major U.S. stock indices rallied sharply on Thursday following dovish commentary from Federal Reserve Governor Christopher Waller, which bolstered expectations that the central bank will keep interest rates steady at its upcoming meeting. The Dow Jones Industrial Average surged 635 points, or 1.2%, marking its strongest single-day performance since early August. Meanwhile, the S&P 500 rose 1.0% and the Nasdaq Composite climbed 1.3%, driven by broad sector participation led by consumer equities. Waller's remarks, indicating a preference to hold rates steady barring unexpected inflation spikes, triggered a decline in the 10-year Treasury yield to approximately 4.75%. According to the CME FedWatch tool, the probability of a rate hike at the next policy meeting declined from 63.2% to 50.4%. Equity markets responded positively despite persistent upward pressure on crude oil prices, which saw Brent cross $95 per barrel amid ongoing geopolitical tensions in the Middle East.