US Stocks Rebound as Oil Prices Fall and Bond Market Eases
The US stock market experienced its best day in six weeks on Thursday as falling oil prices and easing bond market pressure helped reverse many of the moves from the prior day.
Stocks saw a boost after Brent crude oil prices slid 1% to settle at $104.82, down from nearly $110 earlier in the week due to concerns over the war with Iran keeping oil bottled up in the Middle East.
The drop in oil prices pulled yields lower in the bond market and removed some pressure on stocks. The yield on the 10-year Treasury fell to 4.93% from 5.01% late Wednesday, making it less expensive for everyone to borrow money and slowing down the economy.
However, higher interest rates can also undercut prices for stocks, as investors earn more in interest from bonds and become less willing to pay high prices for other investments.