US stocks recovered on Wednesday as oil prices steadied and New York Fed President John Williams lowered expectations for a September interest rate hike. The Dow Jones Industrial Average rose 299.37 points, or 0.56%, to close at 53,066.25. The S&P 500 gained 0.46% to 7,666.82, while the Nasdaq Composite advanced 0.46% to 26,219.85. The small-cap Russell 2000 outperformed its larger-cap peers.
Williams told CNBC that there were “no clear signs right now” that a September rate hike would be necessary to bring down inflation. He also suggested that rising bond yields may reflect a strong economy rather than rising inflation expectations. The comment helped ease rate hike fears that had weighed on markets.
The benchmark 10-year US Treasury yield reached 4.818% during the session, its highest level since November 2023, before easing back. The 30-year yield stood at 5.26%. Bond yields in the UK, Germany and France also moved higher, while Japan's 10-year government bond yield traded around multidecade highs.
Oil remained a major concern. West Texas Intermediate crude futures settled nearly 1% higher at $91.01 per barrel, while Brent crude finished at $95.63, up roughly 1%. Additional US military strikes on Iran raised concerns about further escalation. President Trump threatened to hit Iran “much harder” if it retaliates.
On the jobs front, ADP data showed the US private sector added only 38,000 jobs in August, below economist estimates of 47,000. That could signal a softer reading in Friday’s official monthly jobs report.
Technology and semiconductor stocks supported the recovery. Nvidia, Micron and Qualcomm advanced, while the Philadelphia Semiconductor Index rose. Broadcom was set to report after the close. Dell shares surged after raising annual profit and revenue forecasts, and Uber rose after announcing plans to lay off about 10% of its workforce.
Andy Goldberg, chief investment strategist at Nomura Asset Management International, said the session’s gains were driven more by a lack of bad news than any major catalyst. He noted that high yields have kept a lid on stock valuations after a strong earnings season, making some stocks look more attractive on a dip.
