Stocks climbed more than 1 percent on Thursday as higher oil prices drove up energy shares and falling yields in the bond market eased concerns that higher borrowing costs would hinder economic recovery.
Energy company shares, including Exxon Mobil Corp
We had the OPEC meeting today, plus we had inventory numbers, and both were favorable for oil. That's helping that whole sector, said Owen Fitzpatrick, head of U.S. Equity Group at Deutsche Bank Private Wealth Management in New York. OPEC decided to hold production at current levels.
The Dow Jones industrial average <.DJI> gained 103.78 points, or 1.25 percent, to finish at 8,403.80. The Standard & Poor's 500 Index <.SPX> was up 13.77 points, or 1.54 percent, at 906.83. The Nasdaq Composite Index <.IXIC> was up 20.71 points, or 1.20 percent, at 1,751.79.
Equities recovered Wednesday's losses, extending gains late in the session.
After the market's close, shares of computer maker Dell Inc
The U.S. bond market also rebounded as benchmark 10-year notes bounced 24/32 higher for a yield of 3.64 percent, 10 basis points lower on the day, after an auction of $26 billion in new seven-year Treasury notes. Another Treasury auction on Wednesday helped fuel selling of bonds and stocks as investors worried about expanding U.S. government debt.
Investors have grown concerned that rising bond yields, which move inversely to bond prices, portend a possible rise in borrowing costs, which could choke a much-anticipated economic recovery.
Hopes that the economy may be stabilizing helped stocks recover from 12-year lows of early March, but since early this month the market's rebound has been a bit bumpier. Still, at Thursday's close, the S&P 500 was up 34 percent since the March 9 low.
Financial shares also helped boost the Dow in Thursday's trade, with JP Morgan Chase & Co
But General Motors Corp
Thursday's economic data was mixed, with new orders for durable goods seeing their biggest gain in 16 months, while new home sales rose slightly less than expected.
On the Nasdaq, Costco Wholesale Corp
Trading was moderate on the New York Stock Exchange, with about 1.37 billion shares changing hands, below last year's estimated daily average of 1.49 billion, while on Nasdaq, about 2.24 billion shares traded, below last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by 2 to 1 and on the Nasdaq by about 14 to 11.
(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)