Stocks rise after getting relief from bond market, oil prices

NEW YORK — Wall Street rose Wednesday after getting some relief from relaxing bond yields and falling oil prices.

The S&P 500 climbed 0.8% to claw back more than half its sharp tumble from a day earlier, which sent it to a four-month low. The Dow Jones Industrial Average rose 127 points, or 0.4%, a day after erasing the last of its gains for the year so far. The Nasdaq composite led the market with a gain of 1.4%.

Stocks have struggled since the summer under the weight of soaring Treasury yields in the bond market. High yields undercut stock prices by pulling investment dollars away from stocks and into bonds. They also crimp corporate profits by making borrowing more expensive.

The yield on the 10-year Treasury, which is the centerpiece of the bond market, pulled back from its highest level since 2007, down to 4.73% from 4.80% late Tuesday. Shorter- and longer -term yields also eased to allow more oxygen for the stock market.

Yields fell following a couple reports indicating a slowing economy. The first suggested hiring by employers outside the government was much weaker last month than expected.

On Wall Street, that’s currently good news because a cooling job market could mean less upward pressure on inflation. That in turn could convince the Federal Reserve to take it easier on interest rates.

After already hiking its main interest rate to the highest level since 2001, the Fed has indicated it may keep its overnight rate higher next year than it had earlier expected. Treasury yields have correspondingly snapped higher as traders accept a new normal for markets of high rates for longer.

The Fed is paying particular attention to the job market because too much strength there