U.S. equities rose on Thursday, bolstered by progress on U.S. debt-ceiling talks and easing concerns about Europe’s energy crunch.The S&P 500 climbed as much as 1.5% before fading on news China plans to tighten its supervision over technology companies.
The gains were led by the materials and consumer discretionary sectors, putting the benchmark index on track for its best three-day advance since July. The yield on the U.S. 10-year Treasury note rose to 1.57%, the highest since June.
“We’ve had a 24-hour stretch where we’ve pulled back from a few of the key risk drivers that have been concerning markets,” said Giorgio Caputo, senior portfolio manager at J O Hambro Capital Management.
Markets have been buffeted in the past month by worries about an energy crisis, elevated inflation, reduced stimulus and slower growth. However, the prospect of a short-term U.S. debt limit extension is easing concern over political bickering. Natural gas prices were also lower on Thursday after signals Russia may increase supplies to Europe.
“The volatility we’ve seen in the markets here this week where we’re up one day, down the next is really a reflection of the news cycles and the different news that we’ve been receiving,” Chris Gaffney, president of world markets at TIAA Bank, said by phone.
