Stocks Rally, Yields Retreat after Waller Signals a September Hold

Stocks Rally, Yields Retreat after Waller Signals a September Hold Thornton McEnery Thu, September 3, 2026 at 6:26 PM GMT+2 2 min read NVDA ^DJI ^IXIC ^GSPC %5ESPX Stocks Rally, Yields Retreat after Waller Signals a September Hold - Moby BREAKING NEWS Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.

Christopher Waller stood up at a Reuters event Thursday and paraphrased John Lennon at a room full of bond traders. "Give disinflation a chance," the Fed governor said. "We can wait one meeting.

" Somewhere a rates desk put down its sandwich. Stocks took it as a gift. At noon, the S&P 500 had climbed just over 1%, the Nasdaq 1.

4%, and the Dow tacked on 640 points for a 1. 2% gain and its best session since Aug. 4.

The 10-year Treasury yield eased to about 4. 75% after spiking Wednesday. The Fed's benchmark, the overnight rate it charges banks to borrow from each other, currently sits in a range of 3.

50% to 3. 75%, and markets have spent weeks bracing for it to go higher on Sept. 16.

Higher rates make a boring government bond paying you nearly 5% look awfully good next to stocks so we can forgive the equity jockeys who have been deprived of good news for a few moons from getting a little giddy when Waller signaled he'd hold if August inflation behaves and knocked hike odds from 63. 2% to 50. 4%, per CME FedWatch.

Even if those traders are rejoicing on what's basically now a coin flip. July's vote was 9 to 3 to hold, with Beth Hammack in Cleveland, Neel Kashkari in Minneapolis, and Lorie Logan in Dallas all wanting a quarter point more, the most dissents at a single meeting since 2016. Not one governor joined them.

Warsh, for all his talk about inflation being a choice, has voted to sit still both times he's run the room. One stock. Nvidia-level potential.

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Waller is the one who moved. He spent recent weeks sounding like a man warming up to a hike, and Thursday he stood in front of Reuters and quoted Yoko about waiting. Crude isn't helping.

WTI rose 1% to roughly $92 and Brent cleared $96, and expensive oil has a way of turning up in every price you pay. The yen rallied 2% to 155. 47, dragging US yields lower before Waller opened his mouth.

Services came in hot. ISM's index hit 55. 4 in August, up 1.

3 points from July and past the 54. 1 consensus. The prices gauge jumped 2.

3 points to 72. 6. Employment stayed in contraction at 47.

8. We'd call this a rally built on a conditional clause.