US stocks rose on Wednesday as Treasury yields eased from recent highs, helping the major indices snap a three-day losing streak.
The S&P 500 gained 0.46% to 7,666.60, while the Nasdaq Composite rose 0.45% to 26,217.83. The Dow Jones Industrial Average added 295.07 points, or 0.56%, to 53,061.95, supported by gains in Nvidia and Johnson & Johnson.
Bond yields have weighed on equities in recent sessions as higher oil prices fuelled concerns about inflation and the outlook for interest rates. The US 10-year Treasury yield briefly reached 4.818%, its highest level since November 2023, before easing to around 4.78%.
Expectations for a US rate rise also moderated, with markets pricing a 62.3% probability of a 25-basis-point increase later this month, down from 67.2% a day earlier.
Oil remained elevated as the Iran war intensified. WTI crude gained almost 1% to US$91.01 a barrel, while Brent rose around 1% to US$95.63 following further US strikes on Iran.
Australian Market Outlook
Australian shares are set to open higher, with S&P/ASX 200 futures up 38 points, or 0.4%, to 8,979. The steadier bond market and gains on Wall Street provide a more supportive lead for local equities after recent pressure from rising global yields and inflation concerns. Materials could find support after the sector led Wall Street higher overnight, while elevated oil prices may remain supportive for local energy stocks. Investors will continue to watch developments in the Iran war, bond yields and shifting expectations for US interest rates.
