US stocks rebound as oil prices and bond yields ease

On Thursday, US stocks rebounded and regained much of their weekly losses as falling oil prices and easing bond market pressures helped Wall Street reverse recent declines. The S&P 500 climbed 1.1 percent and the Dow Jones Industrial Average was up 357 points, or 0.7 percent. The Nasdaq composite was 1.6% higher. The dip in oil prices, with a barrel of Brent crude oil sliding 2.5 percent to $103.15, played a significant role in this recovery.

Brent's price drop, attributed to worries over the Iran war keeping oil confined in the Middle East, also contributed to easing bond yields. The 10-year Treasury yield fell to 4.94 percent from 5.01 percent, making borrowing more expensive for the US government and other entities, thereby slowing the economy. The Federal Reserve's decision to raise the federal funds rate by a quarter of a percentage point led to a roller coaster effect on Wall Street, with stocks initially recouping gains before regaining some of their losses.

This move was seen as a commitment to bringing inflation down to its target of 2 percent, despite concerns over the economic impact of higher interest rates. The US economy's strength in withstanding rate hikes was suggested by lower unemployment claims and stronger manufacturing growth. In the tech sector, artificial intelligence companies and homebuilders also saw some recovery, despite mixed reports on housing start numbers.