The S&P 500 climbed 1.1% for its first rise in four days and pulled closer to its all-time high set last week. The Dow Jones Industrial Average added 645 points (1.3%) and the Nasdaq composite rallied 1.5%.
Yields eased Wednesday as oil prices pulled back some more. The price for a barrel of Brent crude fell 5.6% to settle at $105.02, though it remains well above its roughly $70 level from before the war. A report showing less bad inflation in the United Kingdom than economists expected also helped calm yields worldwide. With the easing of yields, technology stocks helped lead Wall Street higher.
Nvidia rose 1.3% ahead of its profit report, acting as the strongest force lifting the S&P 500. Advanced Micro Devices surged 8.1% and Intel jumped 7.4% while the Russell 2000 index gained 2.6% ' more than double the S&P 500's gain ' as smaller companies benefit more from lower yields due to their borrowing needs.
TJX Companies climbed 5.7% after beating profit and revenue expectations, with CEO Ernie Herrman raising full-year forecasts. Red Robin surged 18.2% and Cava Group rose 3.1% on strong earnings. Target, however, fell 3.9% despite beating expectations, as investors had priced in high hopes following its 30%-plus year-to-date gain heading into the report.
In stock markets abroad, indexes climbed in Europe following weaker finishes across Asia. Tokyo's Nikkei 225 fell 1.2% as the yield on the 10-year Japanese government bond slipped but remained near its highest level since 1997.
The 10-year Treasury yield dropped to 4.57% from 4.67%, offering significant relief after a rapid climb from below 4% driven by inflation fears tied to the Iran war and rising oil prices. Those concerns had all but eliminated expectations of a Fed rate cut this year and raised fears of potential hikes in 2026. High yields weigh on stocks, crypto, and other investments, while also pushing up mortgage rates and threatening to slow AI data center borrowing ' a key recent driver of U.S. economic growth.
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