Waller's 'hold' comment sends the Dow up nearly 600 points

Good morning. One sentence from Fed Governor Waller moved Wall Street last night. He said he would back holding rates steady at the September meeting, and the Dow jumped close to 600 points. His reasoning was that recent inflation data are finally showing signs of cooling.

The reaction was big because Chair Warsh had hinted at a possible hike just last week. With hike fears fading, Treasury yields and oil prices both slipped, and the global bond selloff of recent days caught its breath. Still, Waller added a caveat: the next decision depends heavily on next week's August consumer price report, and a hot reading could put a hike back on the table. Half of the relief is conditional.

The embers are still glowing. Iran fired missiles at a US base in Kuwait, and Brent crude topped $96, up about 7% on the week. US mortgage rates hit 6.71%, a one-year high, adding to household strain.

Data is mixed too. Services activity grew at its fastest pace in six months, while hiring remains cool. That makes tonight's August jobs report all the more important.