Stocks drifted higher on Wednesday. The Dow Jones Industrial Average rose 0.8%, while the S&P 500 climbed 0.6% and the Nasdaq Composite gained 0.5%. The move came after oil stopped pushing higher and after John Williams said there were no clear signs right now that a September rate hike would be needed.
John Williams and Treasury yields
Williams, the New York Fed president, said the rise in bond yields could reflect a strong economy rather than a climb in inflation expectations. He added that there were no clear signs right now that a September rate hike would be needed to bring down inflation.
That comment landed while Treasury was still watching rates near their highest level since 2023. The 10-year Treasury yield held at 4.79% on Wednesday, and the 30-year Treasury yield stood at 5.26%.
Oil held the market edge
Brent crude oil futures stayed near $95 per barrel and WTI crude held near $90 per barrel. The rebound in stocks followed a session in which oil prices stalled near recent highs instead of extending the climb that had weighed on equities.
The backdrop remained fragile. President Trump threatened to hit Iran much harder on Tuesday if the nation retaliates against a barrage of airstrikes launched on Tuesday, and Iran said it is targeting US military bases in Jordan and Bahrain. Hereford Fire Station warns of smoke as wildfire drifts is unrelated, but it shows how quickly a drift in conditions can become a wider market story when traders are already on edge.
Broadcom and Snowflake were set to report earnings after the closing bell on Wednesday, giving investors another test after the day’s relief move. ADP also said the US private sector added 38,000 jobs in August, below the 47,000 positions economists had estimated.
Broadcom and Snowflake
The market’s tone now depends on whether oil stays pinned near those levels and whether bond yields keep easing from 2023 highs. If either move reverses, the relief seen in the Dow, the S, and the Nasdaq Composite can vanish as quickly as it appeared.
