The S&P 500 achieved gains for the second consecutive day on Thursday, closing at 7,747.71, as Treasury yields retreated amid optimism that the Federal Reserve may hold interest rates steady this month. The Dow Jones Industrial Average posted its best day since early August, rising 624.16 points to 53,686.11, while the Nasdaq Composite climbed 1.4% to 26,584.06. This market momentum was supported by comments from Federal Reserve Governor Christopher Waller, who expressed a preference to maintain current rates barring unexpected inflation data, leading to a decline in the 10-year Treasury yield to 4.77% after it recently reached a high not seen since November 2023.

Investor sentiment was further bolstered by a drop in expectations for an imminent rate hike, with futures markets adjusting the likelihood of a September increase from above 60% to just over 50%. Despite rising crude oil prices, which have pressured yields and stoked inflation concerns, the Treasury market found relief partly due to a yen rally. However, analysts remain cautious, noting that persistent high oil prices could still push rates higher, posing challenges for investors. The Fed’s focus on inflation over employment numbers suggests that any strong data could reinforce the case for tighter monetary policy.

Among notable corporate moves, shares of cloud data company Snowflake surged over 16% following better-than-expected second-quarter results and optimistic guidance. Conversely, Broadcom’s stock fell nearly 3% due to a disappointing revenue forecast for its fiscal fourth quarter. Other individual stock moves included Tesla rising ahead of its Cybercab event, Robinhood gaining on renewed interest in prediction markets, and Campbell’s dropping after cutting its dividend and lowering fiscal 2027 forecasts amid inflation headwinds and top-line softness.

Global economic conditions also reflected in mixed international markets and currency developments. The Japanese yen reached a one-month high against the U.S. dollar, sparking increased attention from Japanese authorities concerned about currency volatility. Meanwhile, bond yields eased across major economies after a recent sell-off, even as geopolitical tensions in the Middle East kept energy prices elevated. Investors now await fresh economic data, including U.S. services and jobs reports, which will provide further clues on the trajectory of monetary policy and market direction.