Equities moved higher on Thursday, while Treasury yields pulled back, as investors grew hopeful that the Federal Reserve may leave interest rates unchanged this month.

The S&P 500 rose 0.5%, while the Nasdaq Composite traded up 0.6%. The Dow Jones Industrial Average climbed 401 points or 0.8%.

The benchmark 10-year Treasury note yield last traded around 4.75%, seeing declines after Federal Reserve Governor Christopher Waller said he’d be “inclined to support” holding rates steady barring any surprises in upcoming inflation data. On Wednesday, the yield hit its highest level since November 2023.

Bets among fed funds futures traders that the central bank would raise rates in a couple weeks fell to 48.4% after his statement, according to the CME FedWatch tool. That’s down from 63.2% a day ago.

Waller’s remarks, along with the sharp rise in the yen, supported the drop in yields more broadly and offered some momentum to the market even as oil prices continued their climb Thursday. West Texas Intermediate crude futures
 traded 1% higher at around $92 per barrel, while Brent futures advanced less than 1% to above $96.

Rising crude has put upward pressure on Treasury yields recently, as investors worry elevated energy prices would drive inflation and force the Federal Reserve to increase rates. However, U.S. yields were already under pressure Thursday prior to Waller’s comments as the Japanese yen rallied against the U.S. dollar. The yen was last up more than 1% against the dollar at 156.1 yen.

Snowflake shares were a bright spot, popping more than 25% after the company reported better-than-expected second-quarter earnings and revenue as well as issued strong guidance. Conversely, shares of Broadcom dropped 5% following its latest quarterly results, with the company offering a disappointing revenue forecast for the fiscal fourth quarter.