Technology companies powered stocks broadly higher on Wall Street Thursday, driving the S&P 500 to its best day in more than two months and erasing its losses for the week.
The rally, which pushed the Dow Jones Industrial Average up by more than 370 points, followed an early rise in bond yields after a weekly government report on unemployment claims came in better than economists had expected.
Worries that the trade dispute between the U.S. and China is hurting the global economy roiled the market earlier this week, sending many investors fleeing to safer holdings, such as U.S. government bonds. That pulled bond yields sharply lower.
The absence of new worrisome turns in the U.S.-China trade tussle may have also helped keep investors in a buying mood Thursday.
“That’s what the market is attuned to right now, this confirmation of fears that things are going badly,” said Willie Delwiche, investment strategist at Baird. “And if you’re not getting that, then stocks can stabilize, bond yields can move up a little bit.”
The S&P 500 index rose 54.11 points, or 1.9 percent, to 2,938.09. The index has risen for three straight days.
The Dow Jones Industrial Average climbed 371.12 points, or 1.4 percent, to 26,378.19. The Nasdaq composite, which is heavily weighted with technology stocks, vaulted 176.33 points, or 2.2 percent, to 8,039.16. It also had its best day in more than two months and was on track to end the week with a gain.
Investors also favored smaller company stocks. The Russell 2000 index picked up 31.45 points, or 2.1 percent, to 1,532.13.
Major indexes in Europe notched solid gains.
Bond prices fell early in the day, sending yields higher. The yield on the benchmark 10-year Treasury note went as high as 1.79 percent before falling back to 1.72 percent in