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 1.06% to end at 7,747.71, while the Nasdaq Composite rose 1.4% to 26,584.06. The Dow Jones Industrial Average climbed 624.16 points, or 1.18%, to 53,686.11. It was the best day since Aug. 4 for the 30-stock index.

The benchmark 10-year Treasury note yield was last at 4.77%, declining 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 50.4% 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 remained elevated Thursday. West Texas Intermediate crude futures advanced 0.32% to settle at $91.30 per barrel, while Brent futures inched down 0.12% to $95.52.

Rising crude has put upward pressure on Treasury yields recently, as investors worry elevated energy prices would drive inflation and force the Fed 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.

Even though yields saw relief Thursday, CFRA Research's Sam Stovall thinks the market isn't out of the woods, telling CNBC that if oil prices stay "stubbornly high," higher rates could still continue to be "a hurdle for investors to have to overcome."

"Fed Chair Warsh has told us that he's focused on inflation than on payrolls, so even if we get a weak payrolls number tomorrow, that probably will not change his position. If we get a strong one, that could sort of confirm his concern," he said. "You can't really say that the all-clear has been signaled."

Snowflake shares were a bright spot, popping more than 16% after the company reported better-than-expected second-quarter earnings and revenue as well as issued strong guidance. Conversely, shares of Broadcom dropped nearly 3% following its latest quarterly results, with the company offering a disappointing revenue forecast for the fiscal fourth quarter.