US Stocks Rebound as Oil Prices Fall and Bond Market Eases
US stocks surged on Thursday after oil prices plummeted and pressure from the bond market eased. The S&P 500 jumped 1% and was on track for its second rise in nine days, while the Dow Jones Industrial Average rose by 306 points or 0.6%. The Nasdaq composite increased by 1.3%.
The decline in oil prices helped pull yields lower in the bond market, reducing pressure on stocks. Brent crude oil prices dropped to $102.70, down sharply from nearly $110 earlier in the week due to concerns over the war with Iran and its impact on global oil supply.
Higher interest rates can slow the economy by making borrowing more expensive for individuals and businesses. However, some analysts believe that a strengthening economy can withstand higher interest rates as indicated by recent reports showing strong job market and manufacturing growth in the mid-Atlantic region.