Wall Street’s rebound on Wednesday came after a period in which U.S. stocks had been rattled by rapid climbs in bond yields and by gains in oil prices. The turn came as yields eased and crude prices pulled back some of their earlier momentum, giving investors room to refocus on earnings. The S&P 500 rose 1.1% for its first rise in four days and moved closer to its all-time high set last week.
The bond-market move offered the most immediate relief. The yield on the 10-year Treasury fell to 4.57% from 4.67% late Tuesday, a sharp change for a market that moves in hundredths of a percentage point. The AP reported that the 10-year yield had been rising from below 4% before the war with Iran began, as worries about the fighting keeping oil prices high spread into bond pricing around the world. Those concerns appeared to reduce expectations for a Federal Reserve rate cut this year and increased the risk that central banks may have to raise rates in 2026.
Oil prices declined further even as they remained well above pre-war levels. The price for a barrel of Brent crude fell 5.6% to settle at $105.02, though it was still far above roughly $70 from before the war. Prices have fluctuated on shifting expectations about whether the United States and Iran could reach an agreement that would fully resume oil deliveries from the Persian Gulf to global customers.
A report pointing to less bad inflation in the United Kingdom than economists expected also helped calm yields worldwide. With that pressure easing, technology stocks took the lead again, and the day’s large gainers skewed toward companies tied to the AI trade. Nvidia rose 1.3% ahead of its latest profit report, which arrived after the market closed, and the AP said the company delivered profit and revenue growth bigger than analysts expected while also issuing a better-than-expected current-quarter forecast.
Other semiconductor names added to the lift. Advanced Micro Devices rose 8.1%, and Intel rose 7.4%, according to the AP. The rebound also spread beyond mega-cap technology: the Russell 2000, which tracks smaller U.S. stocks, jumped 2.6%—more than double the S&P 500’s gain—reflecting how smaller companies can be more sensitive to borrowing costs and yield moves than their larger rivals.
Retail and consumer-linked stocks also rose on quarterly results that beat expectations. TJX, the company behind TJ Maxx and Marshalls, climbed 5.7% after reporting stronger profit and revenue for the latest quarter than analysts expected. The AP reported that TJX CEO Ernie Herrman said the current quarter is off to a good start, and that the off-price retailer raised its forecasts for revenue and profit this year.
Other companies with reported earnings that topped expectations moved higher as well. Red Robin Gourmet Burgers jumped 18.2%, and Cava Group rose 3.1% after its own better-than-expected profit report, results that can support investor hopes that households can keep spending despite high gasoline prices and broad discouragement about economic conditions.
Across the market, many large U.S. companies had already reported better-than-expected profits for the start of 2026, which helped lift stocks to records, the AP said. On the downside, Target fell 3.9% even though it reported profit and revenue above analysts’ expectations, with the AP citing a leadership change: a new CEO, Michael Fiddelke, is trying to turn around the company and boost revenue.
By the close, the AP reported that the S&P 500 rose 79.36 points to 7,432.97. The Dow Jones Industrial Average gained 645.47 points to 50,009.35, and the Nasdaq composite rallied 399.65 points to 26,270.36. Markets abroad also advanced, with European indexes climbing after weaker finishes across Asia, including Tokyo’s Nikkei 225, which fell 1.2% even as the 10-year Japanese government bond yield slipped but stayed near its highest level since 1997.