US Stocks Rebound as Oil Prices Drop and Bond Market Pressure Eases
The US stock market showed signs of recovery on Thursday after a volatile trading session. The S&P 500 jumped by 1%, while the Dow Jones Industrial Average and Nasdaq composite rose 0.6% and 1.3% respectively, as Brent crude oil prices slid 3% to $102.70 per barrel.
The easing of pressure from the bond market, coupled with falling oil prices, contributed to the recovery of Wall Street. The yield on the 10-year Treasury fell to 4.95% from 5.01% late Wednesday, which helped reduce some of the burden on stocks.
Higher interest rates had weighed heavily on investors earlier in the week, as the Federal Reserve raised its main interest rate for the first time in years and hinted at further increases this year. However, Thursday's developments suggest that the market is adjusting to the new reality of higher borrowing costs.