All three major U.S. stock indices closed with gains exceeding 1% on Thursday, as Treasury yields retreated and investors grew optimistic that the Federal Reserve might hold interest rates steady this month. The Dow Jones Industrial Average climbed 624.16 points, or 1.18%, to finish at 53,686.10. The S&P 500 advanced 81.11 points, or 1.06%, closing at 7,747.71, while the tech-heavy Nasdaq Composite rose 366.23 points, or 1.40%, to settle at 26,584.06.

The so-called "Magnificent Seven" mega-cap tech stocks all finished in positive territory. Tesla surged more than 5%, Meta gained over 3%, and Microsoft rose more than 2%. Alphabet, Amazon, Nvidia, and Apple each advanced by more than 1%.

Cryptocurrency-related equities also saw strong momentum, with Strategy jumping over 17%, Circle climbing more than 16%, and Coinbase surging past 10%. Gold mining stocks were likewise higher, as Gold Fields advanced over 7%, Harmony Gold gained more than 6%, and Kinross Gold rose above 4%.

The benchmark 10-year U.S. Treasury yield was last reported at 4.77%, following comments from Federal Reserve Governor Christopher Waller, who stated he would "lean toward" supporting unchanged rates unless upcoming inflation data presents a surprise. On Wednesday, the yield had touched its highest level since November 2023.

According to the CME FedWatch tool, after Waller's remarks, federal funds futures traders lowered their bets on a rate hike in two weeks to 50.4%, down from 63.2% the previous day. Waller's comments, coupled with a significant appreciation in the Japanese yen, supported a broader decline in yields and provided some momentum for the market, even as oil prices remained elevated on Thursday.

By the close of trading, West Texas Intermediate crude for October delivery rose 28 cents to settle at $91.30 per barrel, an increase of 0.32%. November Brent crude fell 11 cents to close at $95.52 per barrel, a decline of 0.12%.

The recent uptick in oil prices has exerted upward pressure on Treasury yields, as investors worry that high energy costs could fuel inflation and force the Fed to tighten policy. However, before Waller's comments, U.S. bond yields had already come under pressure on Thursday due to the yen's sharp rebound against the dollar.

Despite Thursday's pullback in yields, Sam Stovall of CFRA Research believes the market is not out of the woods yet. If oil prices remain "stubbornly high," higher interest rates could still be "an obstacle that investors must overcome."

"Fed Chair Warsh has told us he's focused on inflation rather than employment data, so even if tomorrow's jobs report is weak, it's unlikely to change his stance. If the data is strong, it might actually confirm his concerns," he noted. "One cannot yet say the all-clear has been sounded."

Snowflake shares soared more than 16% on Thursday, after the company reported better-than-expected profit and revenue for its second fiscal quarter, along with strong forward guidance. In contrast, Broadcom shares fell nearly 3% following its latest quarterly results, as investors were disappointed with the company's fourth-quarter revenue outlook.