Stocks are climbing and global bond yields are retreating after Fed Governor Christopher Waller said he would support holding interest rates steady if August inflation data supports it.

The rally is broad, with all but one S&P 500 sector in the green. Consumer stocks are leading gains, recently up around 2%. Treasury yields are down all along the curve, with the 10-year yield recently at 4.744%, retreating from hitting its2026 highs around 4.8% hit in recent days.

Oil prices are rising for a fourth straight day, as tensions in the Middle East outweigh President Trump's comments that he doesn't expect the recent bout of U.S.-Iran fighting to last "too long."

Meanwhile, the yen is extending its rally against the dollar, bringing its two-day gain to nearly 3%. Hawkish comments from a Bank of Japan board member yesterday have raised the possibility of bigger or more frequent interest-rate hikes, which would strengthen the yen. Traders are also on alert for a possible currency intervention.

Back in the U.S., software stocks are in the spotlight after Snowflake reported better-than-expected results, which its CEO attributed to growing adoption of its AI products. Its shares soared more than 20%.