US stocks rose on Wednesday as Treasury yields eased from recent multiyear highs, allowing the major indexes to recover part of their losses from a three-day losing streak.
Investors also assessed higher oil prices, renewed US-Iran tensions and recent economic data for clues about inflation and Federal Reserve policy.
The Dow Jones Industrial Average gained 299.37 points, or 0.56%, to close at 53,066.25.
The S&P 500 rose 0.46% to 7,666.82, while the Nasdaq Composite advanced 0.46% to 26,219.85. The small-cap Russell 2000 outperformed its larger-cap peers.
Stocks rebound as Treasury yields ease
The latest gains came after the benchmark 10-year US Treasury yield reached 4.818% during the session, its highest level since November 2023.
The yield later eased back toward unchanged, helping stocks recover.
Bond yields in the UK, Germany and France also moved higher, while Japan’s 10-year government bond yield traded around multidecade highs.
The broader global bond selloff has kept pressure on equity markets as investors assess inflation risks and rising government debt.
Oil prices remained a major concern for markets.
West Texas Intermediate crude futures settled nearly 1% higher at $91.01 per barrel, while Brent crude finished at $95.63, up roughly 1%.
The gains followed additional US military strikes on Iran, raising concerns that the conflict could escalate and further affect energy markets.
However, US Energy Secretary Chris Wright said more than 17 million barrels of oil moved through the Strait of Hormuz on Monday, the highest level since the war began in February.
AI stocks and corporate results support markets
Technology and semiconductor stocks helped support the broader market recovery.
Nvidia finished higher, while Micron and Qualcomm also advanced. The Philadelphia Semiconductor Index rose after losing nearly one-quarter of its value since late June.
Investors were also watching Broadcom ahead of its second-quarter results, which were scheduled for release after the market close.
Dell shares surged after the hardware company raised its annual profit and revenue forecasts, while Brown-Forman gained after reporting a quarterly profit beat. Uber also rose after announcing plans to lay off about 10% of its workforce.
Sector performance was mixed. Airlines, gold and silver miners, and regional banks were among the strongest-performing groups.
Software and services stocks underperformed amid concerns about the potential impact of artificial intelligence on the sector.
The recent market gains also reflected investors looking for opportunities among stocks and sectors that may have been oversold during the latest risk-off moves.
Economic data adds to Fed uncertainty
Recent economic data provided additional signals about the US economy.
ADP reported that private payroll growth was weaker than expected in August, while new orders for core capital goods were revised lower.
The softer employment and business spending data could point to some moderation in economic activity.
However, investors remain focused on inflation and energy prices as the US-Iran conflict continues to affect the outlook.
The market is also awaiting further economic reports later this week, including international trade data, second-quarter labor costs and productivity figures, and the services purchasing managers’ index.
With Treasury yields still elevated and oil prices above $90 a barrel, investors continue to weigh inflation risks against corporate earnings and expectations for artificial intelligence-driven growth.
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