US stocks rebounded on Thursday as the recent surge in bond yields paused, providing support to credit‑sensitive sectors. The S&P 500 and the Dow Jones Industrial Average both rose more than 1%, while the Nasdaq 100 advanced 0.8%, held back by underperformance among chipmakers.
Fed Governor Christopher Waller indicated that an additional rate hike would not be necessary if underlying inflation continues to cool, a shift in tone from his earlier emphasis on upside inflation risks. In response, Treasury yields declined, even as signs emerged of a fresh intervention by Tokyo to stem the yen’s slide.
Credit‑sensitive software names rallied, with Microsoft, Palantir, and Meta each gaining more than 3%. Risk‑sensitive Tesla outperformed, jumping 7%. By contrast, Broadcom slipped 3% despite reporting a 221% year‑on‑year increase in revenue in its latest fiscal quarter, as the results failed to reach the upper end of analysts’ estimates. Hewlett Packard Enterprise also came under pressure, dropping 4% after its earnings missed expectations.