NEW YORK — Wall Street advanced on Thursday as investors curbed their rate hike bets after U.S. Federal Reserve Governor Christopher Waller said he would support holding the Fed funds target rate steady if data shows inflationary pressures are easing. All three major U.S. stock indexes were sharply higher, with the Nasdaq enjoying a boost from the "magnificent seven" group of AI-related megacap stocks. All three indexes were on track for weekly gains. Fed Governor Christopher Waller told Reuters he would be inclined to let key interest rates stand should upcoming data confirm that price pressures are easing, but added he would support a rate hike if inflation fails to cool down. Following Waller's remarks, financial markets moderated expectations for rate hikes at the Fed's September meeting, lowering the likelihood to 50.4 percent from 63.2 percent on Wednesday, according to CME's FedWatch tool. The benchmark U.S. Treasury yield pulled back for the second straight session after touching its highest level since November 2023. Rate-hike expectations had spiked in recent sessions, as lon