Dow Gains Nearly 300 Points as Falling Treasury Yields End Three-Day Losing Streak

U.S. stocks moved higher on Wednesday as Treasury yields pulled back from their recent surge to multiyear highs, providing some relief to equity markets.

The S&P 500 rose 0.46% to 7,666.60, while the Nasdaq Composite gained 0.45% to 26,217.83. The Dow Jones Industrial Average climbed 295.07 points, or 0.56%, to 53,061.95. Gains in Nvidia and Johnson & Johnson helped lift the Dow.

The three major indexes all snapped a three-session losing streak, with easing Treasury yields helping sentiment. Markets had recently come under pressure as rising oil prices fueled concerns about inflation and the potential impact on interest rates.

The 10-year U.S. Treasury yield briefly reached 4.818%, its highest level since November 2023, before easing back and ending little changed. Bond yields also remained elevated across the U.K., Germany, France and Japan.

Oil prices continued to climb amid renewed tensions in the Middle East. WTI crude settled near $91.01 a barrel, up almost 1%, while Brent closed at $95.63, also gaining around 1%. The moves followed fresh U.S. military strikes on Iran, adding to concerns over a possible escalation of the conflict.

Despite the geopolitical tensions, more than 17 million barrels of oil reportedly moved through the Strait of Hormuz on Monday, marking the highest level since the war began in February.

Key takeaway: Cooling Treasury yields helped stocks recover, but elevated oil prices and geopolitical risks remain major factors for markets and inflation expectations.