Wall Street Rallies as Rate Hike Concerns Ease; Tesla Surges 5%

As the sharp rise in U.S. Treasury yields calmed and concerns over Federal Reserve rate hikes eased, the three major stock indices rose by more than 1%.

With all sectors except energy posting gains, industrial and financial stocks stood out with notable increases.

The stock market received strong rebound momentum as Federal Reserve Governor Christopher Waller signaled that the benchmark interest rate could be frozen at this month's meeting if inflation continues to slow down.

Following Governor Waller's remarks, pressure for additional hikes was alleviated, and the 10-year Treasury yield, which had topped 4.81% during the session, stabilized downward to around 4.77%, triggering a relief rally.

However, caution remains as international oil prices continue to stay high in the wake of Middle East instability, increasing energy cost burdens for companies and potentially restimulating overall inflation.

By stock, rallies in large-cap tech and software shares led the market.

Nvidia rose by over 1% on news that it is acquiring open-source AI platform Hugging Face, while Tesla surged more than 5% ahead of its robotaxi unveiling event.

In particular, software company Snowflake skyrocketed 16%, driven by earnings and annual revenue forecasts that beat market expectations.

The August employment report, set to be released at 9:30 PM tonight (the 4th) Korea time, is expected to be a decisive turning point determining the direction of monetary policy for the second half of the year.
※ Please note: This article was translated by AI and may contain errors.