Stocks rose on Thursday as energy and commodity shares climbed on higher oil prices and after results of a Treasury bond auction eased any fresh worries over demand for government debt.
Exxon Mobil Corp
Stocks with exposure to commodities, such as Freeport-McMoran Copper & Gold Inc
Stocks have reacted negatively to rising bond yields in recent days, falling on Wednesday after a severe bond market sell-off. However, Thursday's auction of 7-year notes did not result in rising yields, allaying concerns that businesses and consumers may be hit by higher interest rates, dampening an economic recovery.
It looks like at least for now that was a one-day phenomenon, said Art Hogan, chief market strategist at Jefferies & Co in New York, referring to the Wednesday sell-off in Treasuries.
About the prospect of higher interest rates, Hogan said, it slows down the recovery and it attracts what would otherwise be equity dollars into the fixed income market.
The Dow Jones industrial average <.DJI> gained 78.61 points, or 0.95 percent, to 8,378.63. The Standard & Poor's 500 Index <.SPX> gained 10.96 points, or 1.23 percent, to 904.02. The Nasdaq Composite Index <.IXIC> gained 12.97 points, or 0.75 percent, to 1,744.05.
The S&P 500 was on course for three straight months of gains as it headed toward a two-week winning streak. Since reaching a low in early March, the Dow has gained nearly 28 percent and the S&P 500 has risen more than 33 percent.
(Editing by Padraic Cassidy)