A rally in Treasury yields took a breather Thursday, helping Wall Street post its biggest gain in weeks.
The S&P 500 rose 0.6 per cent and the tech-heavy Nasdaq Composite rose 0.8 per cent, both Posting their best performances since September 14, while the Dow rose 0.3 per cent.
Stocks rose broadly, with utilities the only S&P 500 sector to decline. Materials and communications services were among the biggest gainers. The sharp rise in bond yields after the Fed last week raised its interest rate forecast for next year took some of the beating out of stocks.
The yield on the benchmark 10-year Treasury note slipped to 4.596% from 4.625% Wednesday, snapping three straight days of gains.
The three major U.S. stock indexes are still up for the year. Still, all three indexes are on track for losses in the third quarter, which ends Friday.
Peloton Interactive (PTON) rose 5.4% after the fitness equipment company announced a partnership with apparel maker Lululemon Athletica (LULU), ending a battle for the market between the two companies. Chip stocks also rose. Advanced Micro Devices (AMD) rose 4.8%.
Shares of CarMax (KMX) fell 13% as the used-car retailer reported a 13.1% decline in revenue for the fiscal quarter ended Aug. 31, compared with a year earlier. While Americans are browsing the used-car market, they are deterred by price shocks.
Oil markets also took a breather. The front-month Brent futures contract fell 1.2 per cent to $95.38 a barrel.
Overseas, the Stoxx Europe 600 index rose 0.4 percent.