US stocks: Wall Street ends sharply higher as Waller remarks ease rate hike fears
US stocks rose 1%+ on Thursday as Fed Governor Waller's remarks eased rate hike fears. Nasdaq led gains, boosted by AI-related megacap stocks. Nvidia gained 1.8% on a $12.9B acquisition, while Broadcom dropped 2.7% on weak forecasts. Snowflake surged 16.6% after strong revenue guidance. Crypto-linked stocks rose with bitcoin's rebound.
How this was made
The 30-second read
Why it matters
The comment reduces near‑term rate‑hike risk, prompting a broad equity rally and boosting AI‑related stocks.
Market read
The statement shifts market expectations, driving a sharp rise across major US indices and AI‑focused equities.
What to watch
Higher services input prices and widening trade gap could dampen momentum.
Background
Wall Street surged after Fed Governor Christopher Waller signaled willingness to keep rates steady pending inflation data.
Ticker impact
Nvidia rose 1.8% after announcing a $12.9 billion acquisition of Hugging Face.
Potential further gains if market views deal as strategic.
Acquisition of a leading AI developer aligns with Nvidia's growth narrative.
Broadcom fell 2.7% after issuing a weaker‑than‑expected Q4 revenue forecast.
Further downside expected pending guidance clarification.
Guidance shortfall signals slower demand for AI‑related chips.
Snowflake jumped 16.6% after forecasting strong annual revenue.
Likely continued rally on earnings momentum.
Guidance beats market expectations for a high‑growth SaaS player.
ServiceNow gained between 2.1% and 6.5% on the day.
Small upside potential in line with sector strength.
Move reflects overall AI‑related sector enthusiasm.
Salesforce rose between 2.1% and 6.5% as AI sentiment lifted software stocks.
Limited upside unless company‑specific news emerges.
Gain is driven by broader market dynamics, not new company data.
Adobe advanced between 2.1% and 6.5% amid AI‑driven market rally.
Potential incremental gains if AI narrative persists.
No specific Adobe catalyst beyond market sentiment.
Coinbase Global surged 10.1% as bitcoin recovered.
Likely continued rise with sustained crypto strength.
Direct exposure to Bitcoin price drives performance.
Robinhood Markets surged 16.6% on the day.
Potential further rally if retail flow stays strong.
Broad market rally and crypto exposure benefit the platform.
Market effects
AI‑related megacap stocks lift technology and software sectors.
US equity markets rally broadly, with modest spillover to global indices.
Fed Governor comment eases rate‑hike expectations, supporting risk assets worldwide.
Counterpoint
If inflation proves sticky, the Fed could resume hikes, reversing the rally.
Key entities
- Fed GovernorChristopher Waller
Provided forward guidance on interest‑rate policy.
