Wall Street rebounded Wednesday after a shift in sentiment that tied the latest stock gains to calmer conditions in Treasury yields and lower oil prices. The rebound came as traders appeared to take some pressure off the bond market, where yields had climbed quickly in recent sessions and had unsettled investors across global markets. The latest move put equities back in focus as investors weighed the outlook for rates and energy prices, both of which have been influenced by worries tied to the Iran conflict.
The S&P 500 climbed 1.1% for its first rise in four days, bringing it closer to an all-time high set last week. The Dow Jones Industrial Average added 645 points, or 1.3%, and the Nasdaq composite rallied 1.5%, according to the report. The day’s index moves reflected broad risk-on trading rather than a narrow sector-led recovery.
One driver was the easing in Treasury yields. The 10-year Treasury yield fell to 4.57% from 4.67% late Tuesday, a notable drop for a market that moves in hundredths of a percentage point. The report linked earlier yield pressure to concerns that fighting could keep oil prices high, which in turn complicated expectations around inflation and interest-rate cuts.
The same dynamics have also been reflected in rate expectations for the Federal Reserve. The report said the inflation worries appeared to reduce the chances of a cut by the Fed this year and increased the risk that central banks could raise rates in 2026. It also described how high yields can weigh on economic activity and investment, including by affecting borrowing costs and potentially constraining corporate plans such as those tied to AI-related infrastructure.
Oil prices fell again, adding to the reprieve. Brent crude dropped 5.6% to settle at $105.02 a barrel, even as it stayed well above its roughly $70 level from before the war. The report said price swings have tracked changing hopes that the United States and Iran could reach an agreement that would allow oil deliveries to resume fully from the Persian Gulf to customers worldwide.
Investors also found support in corporate results, with technology shares leading the rebound. Nvidia rose 1.3% ahead of its latest profit report after the market closed, and the report said Nvidia was the strongest force lifting the S&P 500. The report also noted that Nvidia delivered a quarter with bigger-than-expected growth in profit and revenue, along with a better-than-expected revenue forecast for the current quarter.
Other major technology names moved higher as well. Advanced Micro Devices rose 8.1% and Intel gained 7.4%, according to the report. Beyond large-cap tech, the report said the rally gave outsized relief to smaller companies, which often depend more on borrowing; the Russell 2000 index of the smallest U.S. stocks jumped 2.6%, more than double the gain of the S&P 500.
Earnings from retailers and consumer-facing companies added to the market’s momentum. TJX—the company behind TJ Maxx and Marshalls—rose 5.7% after reporting stronger profit and revenue than analysts expected, and the report included comments from TJX CEO Ernie Herrman that the current quarter was off to a good start. Red Robin Gourmet Burgers jumped 18.2% and Cava Group rose 3.1% after their profit reports beat expectations, the report said.
On the other side of the tape, the report cited Target falling 3.9% even after the company reported better profit and revenue than analysts expected. The report said the company’s new CEO, Michael Fiddelke, is trying to turn around Target’s revenue, and it noted that expectations had been high after Target’s shares entered the day up more than 30% for the year so far, far outperforming the S&P 500’s gain.
Outside the United States, indexes climbed in Europe after weaker finishes across Asia, the report said. Tokyo’s Nikkei 225 fell 1.2%, though the report attributed that movement to the 10-year Japanese government bond yield slipping while remaining near its highest level since 1997.