US high-beta stocks surged, with Snowflake up nearly 26% intraday and Tesla up almost 8%. Crypto-related stocks saw double-digit gains, driven by positive AI earnings reports and a dovish shift from the Federal Reserve's Christopher Waller.
US equities saw a significant rebound in risk appetite on Thursday, Eastern Time, with high-beta growth stocks performing strongly. AI data cloud leader Snowflake surged nearly 26% at one point due to strong earnings, while Tesla rose almost 8% ahead of its Cybercab launch event. Cryptocurrency-related stocks, including major Bitcoin holder MicroStrategy, also recorded double-digit gains. This rally was primarily driven by two factors: Dell Technologies and Snowflake successively reported better-than-expected results, bolstering market confidence in AI infrastructure and enterprise AI demand. Concurrently, Federal Reserve Governor Christopher Waller sent relatively dovish policy signals, stating that if August inflation data continues to improve, he would lean towards supporting keeping interest rates unchanged. This led to a cooling of market expectations for a September rate hike and a decline in US Treasury yields, creating room for high-valuation growth stocks to rise.
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