Tech rebound brings stocks up

U.S. equities rose, with technology shares rallying after strong earnings from Facebook and Advanced Micro Devices offered a reprieve for bulls. The yield on 10-year Treasuries fell below 3 percent.

The Nasdaq 100 Index surged 2.1 percent, with Facebook notching its best day in two years and AMD lifting beleaguered chipmakers. Intel Corp. reports after the U.S. close. Ratesensitive shares advanced as the 10-year yield fell for the first time in nine days. Crude oil rose and gold declined.

“The wave of earnings are finally getting to the right place,” said Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management. “It has been a market where the good news on earnings and the good news on the economy have been offset by these rising yields on the fixed income side, and it’s just that that has created extra volatility.”

“Everyone is surprised at how well these companies are posting their performance through this earnings period,” said Kevin Miller, chief executive officer of Minnesota-based E-Valuator Funds. “Two things drive markets: One is fundamentals, and two is emotion.”

In Europe, the common currency declined after the central kept interest rates unchanged and ECB President Mario Draghi said growth in the euro area is expected to remain solid, albeit with some moderation. European bonds tracked the jump in Treasuries, while the Stoxx Europe 600 Index posted its first increase in three days. Earlier in Asia, shares in Korea and Japan rose as those in China and Hong Kong fell.

Elsewhere, aluminum climbed and Alcoa Corp. gained. Oleg Deripaska plans to keep control of United Co. Rusal even as the Russian aluminum giant battles for survival in the face of harsh U.S. sanctions, according to people familiar with the matter.