What happened
On the evening of September 3 Beijing time, U.S. stocks opened higher and extended gains, with the Dow up 0.66%, the S&P 500 up 0.47%, and the Nasdaq up 0.68%. Tesla and SpaceX each climbed more than 4%, Meta added over 3%, Microsoft rose over 2%, Nvidia, Google, and Amazon gained over 1%, and Apple advanced 0.39%. Earlier, Tesla had been up more than 5% and Meta more than 4%.
The market move followed comments from Federal Reserve Governor Waller, who said he leans toward supporting keeping interest rates unchanged if data permit. Nick Timiraos, called the Fed's mouthpiece, said Waller's stance has shifted from hawkish to inclined to stay put ahead of the September 15-16 meeting. Waller said the August CPI report will influence his vote, and a hot reading would make a rate increase appropriate. Timiraos also noted Waller's communication approach differs from Fed Chair Warsh's.
In other markets, spot gold rose 1.87% to $4,469.13 an ounce and silver gained 1.62% to $66.35. Treasury yields dropped across the curve, with the 2-year at 4.33%, the 10-year at 4.50%, and the 30-year at 5.237%. USD/JPY fell more than 2% to below 156, while Japanese and U.S. officials pledged to intervene if needed. Meta released its most powerful AI model to date, Muse Spark 1.3, whose chief AI officer said it closes the gap with OpenAI and Anthropic. Meanwhile, AI hardware stocks declined, with the Philadelphia Semiconductor Index down 2% and Broadcom down more than 6%.
Why it matters
Waller's apparent shift toward holding rates steady could support risk assets and tech valuations, but it makes the upcoming August CPI release critical for market direction.
The split between AI software strength at Meta and weak AI hardware/semiconductor stocks suggests investors are recalibrating where AI-driven returns are emerging.
The sharp yen move and explicit intervention warnings highlight growing currency tension that could affect global capital flows and risk appetite.
Key facts
Fed Governor Waller leans toward unchanged rates if data allow.
Dow +0.66%, S&P 500 +0.47%, Nasdaq +0.68% as of 22:00 Beijing time.
Spot gold rose 1.87%; silver rose 1.62%; Meta unveiled Muse Spark 1.3.
What to watch next
The August CPI report and its influence on the Fed's September rate decision.
Whether the Bank of Japan's expected 25-basis-point hike triggers further yen gains or intervention.
Whether Meta's new AI model extends the tech rally or if AI hardware weakness persists.