Stocks rose Thursday in an afternoon rally as traders tried to shake off concerns over higher interest rates.
The S&P 500 gained 0.76% to close at 3,981.35. The Nasdaq Composite climbed 0.73%, ending the session at 11,462.98.
The S&P 500 and the Nasdaq were under pressure earlier in the day. However, the market turned around in the afternoon after Atlanta Federal Reserve President Raphael Bostic said he’s “firmly” in favor of sticking with quarter-point hikes.
S&P 500 reverses in the afternoon
Rates pressed higher, with the benchmark 10-year note yield topping 4%. The 2-year note yield reached levels not seen in more than a decade.
A surge in labor costs and a pullback in jobless claims reported early Thursday point to the likelihood that the Fed will raise its benchmark interest rate another 0.25 percentage point later this month.
Wall Street is coming off a mixed session, with the S&P 500 and Nasdaq Composite falling Wednesday, while the Dow posted a small gain. All of the major averages are on track for a winning week, with the Dow set to snap a four-week losing streak.
The rise in bond yields and concerns of a potentially larger-than-expected hike from the Federal Reserve have fueled investor concern in recent days, putting a dent in the early 2023 rally.
In corporate earnings, Salesforce and Okta shares jumped in on strong results and guidance. Silvergate Capital, meanwhile, shares plunged more than 57%, after the company delayed its 10-K annual report.
Tesla shares, popular with retail investors, lost 5.8% after the company failed to unveil details of any next-generation vehicles during its much-anticipated investor day Wednesday.