Traders work on the NYSE floor
Stocks rebounded on Thursday after a selloff following the Fed's decision to hike rates. AFP

Markets rebounded on Thursday after a selloff following the Federal Reserve's decision to hike rates. Stocks rose, while bond yields and oil prices fell.

The Dow Jones Industrial Average climbed 0.65%, while the S&P 500 did so 1.15%. The tech-heavy Nasdaq Composite overperformed, jumping 1.71%.

At the same time, bond yields fell after topping 5% and reaching a multi-decade high earlier this week.

As for oil prices, Brent crude, the international benchmark, fell 1.63% and stood at $104.10 at 4:02 p.m. ET, while West Texas Intermediate, the U.S. benchmark, dropped 1.19% and clocked in at $101.21 at the same time.

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Concerns about supply were somewhat eased after a report detailed that Saudi Arabia expects to resume partial pumping at its damaged East-West pipeline in a matter of days.

A person familiar with the matter told Bloomberg that Saudi Aramco is working to bypass a damaged region soon, and to return to full capacity in about six weeks. The pipeline transports about 4% of global oil supplies.

However, the war in Iran and conflicts across the Middle East are continuing with no end in sight. This has led JPMorgan to stop forecasting when it will end.

"For the first time since the start of the Iran conflict, we don't have a baseline view," said the bank's head of global commodities strategy, Natasha Kaneva, according to CNBC. "We simply don't know how to model the endgame," she added.

The bank believed at the beginning of the conflict that different scenarios would force President Donald Trump to reach an agreement that would reopen the Strait of Hormuz by June. They included oil prices above $100, gas near $5 per gallon and the 10-year Treasury yield above 5%.

"Six months later, many of those lines have been crossed, yet the exit strategy is less clear, not more," Kaneva said.

President Donald Trump told Axios on Thursday that he is approaching a key moment in the war. "Do I want to go in and annihilate them or do I not? It's a big decision. Anything could happen with me," he said.

Trump went on to say he wants to use next week's UN General Assembly to discuss next steps with regional allies. "I want to find out where they are and how they are doing. We have been very protective of them."

Trump also said on Wednesday that Iran wants to "make a deal" and "hopefully we're toward the end of the war."