S&P 500 scores best day in 3 weeks as bond yields ease back

U.S. stocks finished higher on Wednesday as yields on long government bonds retreated from 16-year highs, helping lift the S&P 500 to its best day in three weeks. The Dow Jones Industrial Index
SPX,
+0.81%
gained about 125 points, or 0.4%, ending near 33,128, according to preliminary FactSet data. The boost, however, failed to push the blue-chip index back into the green for the year, a day after its gains for 2023 were erased. The S&P 500 index
SPX,
+0.81%
rose 0.8%, marking its biggest daily climb since September 14, according to FactSet data. The Nasdaq Composite Index
COMP,
+1.35%
shot up 1.4%. U.S. bond yields have surged since late September when the Federal Reserve indicated that rates likely will stay higher for longer than initially anticipated as it works to keep inflation in check. The sharp bond-market repricing has made buyers reluctant to step in, sending yields higher and creating ripples in financial markets. The 10-year Treasury
TMUBMUSD10Y,
4.739%
fell 6.6 basis points Wednesday to 4.735%, while the 30-year Treasury yield
TMUBMUSD30Y,
4.868%
shed 6 basis points to 4.876%, after briefly topping 5% late Tuesday. Investors remain focused on political upheaval in Washington and the prospect of a November government shutdown. Friday also brings the monthly jobs report for September, which is expected to show a cooling labor market, but still a low 3.7% unemployment rate.