Stocks Rebound as Investors Eye Iran Conflict and Rate Hikes

Stock markets rebounded on Wednesday after three days of declines as investors watched for new developments in the U.S.-Iran conflict. The Dow Jones Industrial Average rose 295.07 points, or 0.56 per cent, to 53,061.95, while the S&P 500 climbed 35.13 points, or 0.46 per cent, to 7,666.60.

The Japanese yen jumped against the U.S. dollar by 0.79 per cent to 158.92 per dollar. The currency had retraced half of its gains made after a rare joint intervention by the U.S. and Japan at the end of July.

U.S. Treasury yields eased from multi-year highs, but traders have increased bets on a Federal Reserve interest rate hike. The yield on benchmark U.S. 10-year Treasury notes shed 0.2 basis point to 4.794 per cent.

Investors remained focused on Iran and the potential for renewed escalation in the Middle East. Oil prices rose about 1 per cent amid worries about further disruption to energy supplies.