Stocks Bounce Back as Oil Prices Fall and Bond Market Eases

U.S. stocks experienced a significant bounce-back on Thursday after oil prices fell and pressure from the bond market eased.

The S&P 500 jumped 1% and was on track for just its second rise in the last nine days, while the Dow Jones Industrial Average rose 306 points, or 0.6%, as of 9:35 a.m. Eastern time.

The decline in oil prices, specifically Brent crude oil which fell 3% to $102.70, helped pull yields lower in the bond market and removed some pressure on stocks.

Fed Chairman Kevin Warsh cited geopolitics and the threat of inflation as reasons for the interest rate hike, but investors took heart from the signals that the Fed is committed to getting inflation back to its target of 2%.