US Stocks Rebound as Oil Prices Fall and Interest Rates Rise

The US stock market rebounded on Thursday after falling oil prices and easing pressure from the bond market helped reverse many of its moves from the prior day. The S&P 500 jumped 1.1% for its second rise in nine days, with the Dow Jones Industrial Average adding 316 points or 0.6%, and the Nasdaq composite climbing 1.7%. Brent crude oil prices dropped 1% to $104.82, down from nearly $110 earlier in the week on concerns about a war with Iran keeping oil bottled up in the Middle East.

The Federal Reserve's decision to raise the short-term interest rate by a quarter of a percentage point for its first hike in over three years also sent signals that the Fed is committed to getting inflation back to 2%. However, higher rates can undercut prices for stocks and other investments, making investors less willing to pay high prices.

Reports showed the US economy may be strong enough to withstand higher interest rates, with fewer workers applying for unemployment benefits last week and manufacturing growth in the mid-Atlantic region stronger than expected. Stocks in the artificial-intelligence industry continued to rebound, led by Nvidia's 2.5% gain and Advanced Micro Devices' 6.4% rise.