Dow Jones Gains 624.16 Points as Waller Keeps Rate Path Data-Dependent

Key Facts

The Dow Jones Industrial Average closed September 3 up 624.16 points, or 1.18%, at 53,686.11 as technology stocks led gains. The 10-year Treasury yield declined to 4.77% from 4.79%, while the 2-year yield fell to 4.34% from 4.39%.

Federal Reserve Governor Christopher Waller outlined a conditional policy path: hold rates if progress toward the 2% inflation goal continues, while retaining the option of an increase if August data run hot. After his remarks, the market-implied probability of a hike at the next meeting fell to 50.4% from 63.2%.

Investors watch the 2-year Treasury yield because of its sensitivity to Federal Reserve policy expectations. Lower yields can support technology valuations by reducing the discount rate applied to future earnings, but that does not establish monetary policy as the session's only driver.

SNOW jumped 16.55% to USD 356.47 after reaching USD 384.56 intraday. Snowflake reported product revenue of USD 1.49 billion, up 37% year over year, and raised its full-year product-revenue forecast to USD 6.07 billion from USD 5.84 billion.

AVGO, by contrast, fell 2.74% to USD 357.16 after reaching USD 359.40. Broadcom forecast fourth-quarter revenue of approximately USD 34.8 billion, up 93% year over year, but the outlook missed market estimates, supporting the interpretation that elevated investor expectations pressured the shares despite continued business growth.

Attention now turns to the August U.S. employment report on September 4 at 8:30 a.m. ET, followed by the Consumer Price Index on September 11 at 8:30 a.m. ET. Both releases precede the September 15-16 FOMC meeting, and surprises in inflation or employment could reprice stocks and bonds.