Tech Shares Lead U.S. Stocks Higher

Economic IndicatorsDow Jones Newswires

U.S. stocks rose after a recent spate of losses triggered by investors' re-evaluation of global central-bank policy.

The Dow Jones Industrial Average rallied 205 points, or 1.1%, to 18240. The S&P 500 gained 1.2% and the Nasdaq Composite rose 1.5%.

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Bond markets were choppy again Thursday. The yield on the benchmark 10-year U.S. Treasury note was recently at 1.720%, according to Tradeweb, compared with 1.689% Wednesday. Yields rise as bond prices fall.

Stocks and bonds have whipsawed for several days, in response to growing worries that global monetary policy may be less easy than anticipated. European stocks had their longest losing streak since June, following the European Central Bank's silence last week on whether it would extend bond purchases beyond March. The S&P 500 has fallen for five of the last six trading days.

"People are playing a waiting game," said Stephen Carl, head equity trader at Williams Capital Group. Investors are "keeping an eye on things with the election and the upcoming Fed meeting on the horizon."

Brad McMillan, chief investment officer for Commonwealth Financial Network, agreed that many investors remain focused on central-bank policy.

"You're getting this common narrative from central banks that maybe they've done all they can do, and I think that's worrying markets, but, at the same time, stimulus continues," he said.

Tech and energy shares led Thursday's broad rally in the U.S. stock market. Apple added 3.1% and was on track for its fourth straight session of gains.

Oil prices rose, lifting energy companies in the S&P 500 by 1.8% after two days of losses. U.S. crude oil gained 1% to $44.04 a barrel.

Shares of Goodyear Tire & Rubber rose 5% after the company boosted its dividend and reaffirmed its 2016 guidance.

As in recent sessions, much of the focus remained on central banks.

The Bank of England left its key rate unchanged at the conclusion of its monetary-policy meeting Thursday, but suggested that it still expects to cut it again later this year if the U.K. economy weakens as officials project.

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