Stocks traded mostly higher Wednesday as bond yields steadied and oil prices rebounded after the Suez Canal was blocked by a huge containership that ran aground.
The Dow Jones Industrial Average gained 333 points, or 1.03%, to 32,757, the S&P 500 was up 0.56% but the Nasdaq turned lower, falling 0.19%.
Intel traded slightly higher after the chipmaker said it was investing $20 billion in two new factories in Arizona as it looks to create a foundry business to provide chips for other companies.
Stocks finished lower Tuesday, bond yields retreated and oil prices plunged on worries a resurgence of the coronavirus could delay a reopening of the global economy. The Nasdaq dropped 1.12%.
Bond yields edged higher Wednesday. Federal Reserve Chairman Jerome Powell, in testimony before a congressional committee, said he expected inflation to move higher this year but added the Fed’s “best view is that the effect on inflation will be neither particularly large nor persistent.”
The 10-year U.S. Treasury yield rose modestly to 1.647% on Wednesday. The benchmark yield hit 1.754% last week, a 14-month high.
Investors will be closely monitoring Treasury bond auctions both Wednesday and Thursday. Treasury Yields Higher As PMI Highlights Inflation Risk; Nasdaq Slides
Powell and Treasury Secretary Janet Yellen were appearing before the Senate Banking Committee on Wednesday.
Oil prices in the U.S. rose 3.43% to $59.74 a barrel, partially rebounding from Tuesday’s plunge of as much as 6% on renewed lockdowns in Europe. Prices rose Wednesday after the Suez Canal was blocked by a Taiwanese tanker that blew off course, creating a bottleneck that could slow the delivery of more than 13 million barrels of crude through one of the world’s busiest waterways.
Bitcoin rose to nearly $56,726 Wednesday after Tesla CEO Elon Musk said Wednesday the electric vehicle company would begin accepting the world’s largest cryptocurrency as payment for its cars.
This article was originally published by TheStreet.