US Stocks Rebound on Falling Oil Prices and Easing Bond Market Pressure
US stocks rebounded on Thursday after a decline earlier in the week following the Federal Reserve's interest rate hike. The S&P 500 rose 1.1%, while the Dow Jones Industrial Average increased by 357 points, or 0.7%. The Nasdaq composite gained 1.6%.
The recovery was attributed to falling oil prices and easing pressure from the bond market. Brent crude oil fell 2.5% to $103.15, which helped pull yields lower in the bond market. The yield on the 10-year Treasury dropped to 4.94% from 5.01% late Wednesday.
Higher interest rates can make borrowing more expensive for individuals and businesses, potentially slowing down the economy. However, some reports suggested that the US economy may be strong enough to withstand higher interest rates. The number of workers applying for unemployment benefits decreased last week, and manufacturing growth in the mid-Atlantic region was stronger than expected.