NEW YORK (AP) — Stocks rose on Wall Street Wednesday as falling bond yields and lower oil prices helped ease pressure on the market.
The S&P 500 climbed 0.8%. The Dow Jones Industrial Average added 432 points, or 0.8%, as of 11:03 a.m. Eastern. The Nasdaq composite rose 0.9%.
Technology stocks were gaining ground after two days of losses that weighed on the market. That helped push indexes higher as gains broadened out to other sectors, including retailers
and industrial companies.
Apple rose 1%, Amazon jumped 3% and Caterpillar rose 1.6%.
Nvidia rose 0.6% following a 4.1% drop on Tuesday. Micron Technology, which reports its latest results later Wednesday, fell 0.4% following its 13.2% plunge on Tuesday.
Google's parent company Alphabet rose 1.8%. The company is replacing Verizon in the Dow on Monday. Alphabet will become the fifth Magnificent 7 company to join the index. The others are Apple, Amazon, Microsoft and Nvidia.
Big Tech companies, especially those focused on artificial intelligence, have pricey values that give them more sway over the market's broader direction. That was the case on Tuesday when sharp losses for a few valuable tech companies pulled the market lower.
Oil prices continued slipping as the U.S. and Iran negotiate a possible end to their war. Brent crude, the international standard, fell 4.2% to $73.58 a barrel. It has been trading below $80 in recent days but is still above the roughly $70 per barrel it was trading at in late February before the war began. U.S. crude prices fell 4.6% to $69.85 a barrel.
Oil companies lagged the market. Exxon Mobil fell 2.7% and Chevron lost 2.8%.
Some of the bigger winners on Wall Street included homebuilders following approval of legislation beneficial to the industry. KB Home surged 16.4% and D.R. Horton jumped 7.8%.
Treasury yields mostly fell, removing more pressure from stocks. The yield on the 10-year Treasury fell to 4.41% from 4.50% late Tuesday. The yield on the 2-year Treasury eased to 4.15% from 4.16%.
Treasury yields are still elevated from earlier in the year, especially the 2-year Treasury, which more closely tracks anticipated action from the Federal Reserve. The central bank has signaled that it is considering raising its benchmark interest rate by the end of the year. Wall Street is forecasting at least one hike to interest rates by December, according to data from CME Group.
The Fed is worried about stubborn inflation, which had been rising throughout the year as tariffs raised the costs for a wide range of goods. A shock to energy prices because of the U.S. war with Iran worsened inflation. Gasoline prices surged and shipping costs rose. The impact is expected to linger even as oil and gasoline prices fall.
The central bank will get a fresh update on inflation Thursday, when its preferred measure for prices is released. Economists expect it to show that prices rose 4.1% in May, which would be the highest level in three years.
Gold prices fell 3%, and at one point slipped below $4,000 an ounce. Gold was above $5,000 an ounce earlier in the year. The precious metal is often seen as a barometer of the appetite for risk among investors, with more buying at times of increased anxiety and more selling as anxiety eases.
Markets were mixed in Europe and Asia.
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AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
