Stocks recovered most of Wednesday’s losses as technology shares rallied, bond yields eased and investors weighed lower oil prices after the U.S.-Iran agreement reopened the Strait of Hormuz.

By yourNEWS Media Newsroom

Wall Street rebounded Thursday, with the Nasdaq composite climbing nearly 500 points as investors moved back into stocks after a Federal Reserve-driven selloff a day earlier.

The S&P 500 rose 1.1%, while the Dow Jones Industrial Average added 0.1%. The Nasdaq composite posted the strongest gain among the major indexes, jumping 1.9% as technology stocks led the market higher.

Earlier in the afternoon, the S&P 500 was up 1%, the Dow had gained 103 points, or 0.2%, and the Nasdaq had risen 1.5%, or 496.28 points. All three major indexes were on track for weekly gains. U.S. markets will be closed Friday for Juneteenth.

The advance helped reverse much of Wednesday’s decline, which followed signals from the Federal Reserve that policymakers may raise interest rates this year to keep inflation under control.

Treasury yields pulled back Thursday, easing pressure on stocks. The yield on the 10-year Treasury fell to 4.45% from 4.49% late Wednesday, while the two-year Treasury yield, which more closely follows expectations for Federal Reserve policy, slipped to 4.18% from 4.20%.

Oil prices also eased some pressure on markets, though crude prices remained volatile after the United States and Iran signed an agreement to end their war and reopen the Strait of Hormuz to oil tanker traffic.

Brent crude, the international benchmark, spent much of the day lower before settling 0.4% higher at $79.85 per barrel. U.S. benchmark crude fell 0.2% to $75.85 per barrel.

Prices remain above the roughly $70-per-barrel level seen before the war but are well below the $100-plus levels reached several weeks ago. Higher oil prices had weighed on markets throughout the U.S. war with Iran by adding to inflation pressures and raising concerns about consumer costs.

The U.S.-Iran agreement waives sanctions against Iran and allows the country to sell oil freely. It also reopens the Strait of Hormuz, a critical shipping route for roughly one-fifth of the world’s oil supply.

“While investors are welcoming the agreement as a constructive step for geopolitical risk, uncertainty remains elevated around potential flare-ups, the pace of shipping normalization, control of the waterway, the cost of access, and the path forward for Iran’s nuclear program.” said Adam Turnquist, chief technical strategist for LPL Financial, in a research note.

The average U.S. gasoline price has fallen below $4 per gallon, though prices remain 25% higher than a year ago. Rising shipping and energy costs have also pushed prices higher across a range of goods.

Inflation concerns remain central to the market outlook.

The Federal Reserve ended its two-day policy meeting Wednesday by leaving its benchmark interest rate unchanged, but officials signaled they may raise rates at least once before the end of the year.

The Fed has been balancing persistent inflation against a labor market that remains relatively strong, with low unemployment and solid job growth.

“This shift in the risk distribution helps explain why around half of the committee thought that an interest-rate hike this year might be needed,” said James McCann, senior economist at Edward Jones, in a research note.

Technology stocks helped drive Thursday’s gains.

Intel surged 10.3% after President Donald Trump announced that the semiconductor company will make chips for Apple in the United States. Other semiconductor stocks also climbed, with Nvidia rising 2.5% and Micron Technology gaining 9.1%.

SpaceX moved lower for the second straight day after its heavily watched debut on the U.S. stock market last week. The Elon Musk-led rocket maker and AI company fell 6.6% Thursday after dropping 4.9% on Wednesday.

Airline and cruise stocks also posted gains as oil prices remained well below recent highs. American Airlines rose 3.3%, United Airlines gained 2.2% and Carnival climbed 3.2%.

Energy companies declined as crude prices remained far off their wartime peaks. Exxon Mobil fell 2.3%, while Chevron lost 2.2%.

Markets were mixed in Europe after closing lower in Asia.

Thursday’s trading reflected a calmer tone after Wednesday’s rate-driven volatility, with investors balancing optimism over lower geopolitical risk and falling energy prices against uncertainty over inflation, interest rates and the details of the U.S.-Iran agreement.