US Stocks Rebound as Oil Prices Fall and Bond Yields Ease

U.S. stocks rose sharply on Thursday, recovering most of their weekly losses as falling oil prices and easing bond yields provided relief following the Federal Reserve's interest rate hike. The S&P 500 climbed 1.1%, the Dow Jones Industrial Average gained 0.7%, and the Nasdaq composite jumped 1.7%, marking the S&P's second rise in the last nine trading days. The market rebound was driven by a decline in Brent crude oil prices, which fell to around $104 per barrel, down from nearly $110 earlier in the week. The drop eased concerns about the war with Iran disrupting global oil supplies and helped pull yields lower in the bond market. The yield on the 10-year Treasury note fell to 4.93% from 5.01% late Wednesday, reducing borrowing costs across the economy. The Fed on Wednesday raised its benchmark interest rate by a quarter percentage point, its first increase in more than three years, and signaled at least one more hike may come this year. Fed Chairman Kevin Warsh cited a strengthening economy and geopolitical risks, including the conflict with Iran, as reasons for the move. The rate decision initially sent stocks on a volatile ride, with sharp losses before a partial recovery.