Stocks in New York rose on Wednesday after an accelerating bond sell-off came to a recess. The Dow Jones Industrial Average rose by 0.3% after going into the red on Tuesday while the S&P 500 was up 0.6%. The tech-heavy Nasdaq Composite advanced by over 1%.
This turnaround comes after the indexes suffered a heavy loss earlier in the day as the 30-year Treasury yield hit 5% for the first time since 2007. Yields later cooled off, with the 10-year yield falling below 4.8%.
Analysts broadly believe that the recent sell-off comes as investors become increasingly convinced that the era of lower interest rates is drawing to a close. On Tuesday, two more Federal Reserve policymakers affirmed that rates are set to remain higher for longer.