US stocks finished mostly higher on Thursday, reversing earlier declines as the recent selloff in Treasuries paused. The S&P 500 added 0.2%, the Nasdaq rose 0.3%, while the Dow ended little changed.
The break in the bond rout pulled 10-year Treasury yields down from their highest level since 2002, with the unwinding of crowded trades helping to drive the rebound. Treasuries also strengthened after Fed Vice Chair Philip Jefferson said more time may be needed to determine whether additional interest-rate hikes are warranted.
The stabilization in yields provided some support to credit-sensitive equities. Chipmakers, which have been contending with record levels of debt issuance, mostly advanced. Nvidia gained 1.1%, AMD rose 0.6%, and Micron climbed 3% after issuing an upbeat current-quarter outlook on the back of strong fiscal fourth-quarter results.
Before Thursday’s move, Treasury yields had extended a months-long climb, driven in part by higher oil prices, which stoked inflation worries and reinforced expectations of further rate increases by major central banks.
