Stocks on Wall Street saw gains on Wednesday, recovering from two weak days, as oil prices and bond yields held relatively steady. The S&P 500 index rose 0.6%, the Dow Jones Industrial Average increased by 270 points, or 0.5%, and the Nasdaq composite climbed 0.5%. These gains followed a period where the broader market was negatively impacted by rising oil prices and a bond-market sell-off. Banks performed strongly, with JPMorgan Chase rising 0.8% and Bank of America gaining 1.3%.
Oil prices remained relatively stable despite intensified conflict in the U.S. war with Iran, which saw the U.S. attack sites in Iran and Iran retaliate in the Gulf region. Brent crude, the international standard, rose 1% to $95.69 a barrel. West Texas Intermediate (WTI) crude for October delivery fell to $89.08 a barrel, down 3.5% from its overnight high of $92.29. The surge in oil prices earlier in the conflict, which shut down the Strait of Hormuz, had fueled a jump in gasoline prices and global shipping costs.
Inflation remains a key concern, exacerbated by higher energy costs and a volatile U.S. tariff war. The jobs market shows mixed signals, with ADP reporting a slip in private-sector employment in August, while government data showed U.S. job openings rose in July. The bond market continued to sell off, signaling expectations for higher borrowing costs. The yield on the 10-year Treasury rose slightly to 4.80% from 4.79%, while the 2-year Treasury yield held steady at 4.39%. Investors are betting on a 64% chance that the Federal Reserve will raise interest rates at its upcoming meeting in September to combat inflation, which remains well above its 2% target.
