The S&P 500 rose 0.2% and inched closer to its all-time high set last week. The Dow Jones Industrial Average added 276 points (0.6%) and the Nasdaq composite climbed 0.1%.

All three indexes erased early drops and gained strength after a U-turn in oil prices: Brent briefly topped $109 a barrel in the morning'threatening to worsen already-high inflation'before reversing course and settling down 2.3% at $102.58. The yo-yoing reflects uncertainty over how long the war with Iran will keep the Strait of Hormuz shut, which has blocked tankers from exiting the Persian Gulf and pushed crude prices higher.

As oil eased, so did pressure on Wall Street that had been building from the bond market; yields climbed to levels that threatened to slow global growth and undercut prices for stocks, bitcoin and other investments. Higher yields have already pushed the average long-term U.S. mortgage rate to its most expensive level since last summer and could curb corporate borrowing for projects such as AI data centers that have recently supported U.S. growth.

A preliminary report on U.S. business activity suggested that companies are also feeling the bite of higher inflation. A flash survey from S&P Global said growth in activity for U.S. services businesses unexpectedly slowed a tad, though growth was better than forecast for U.S manufacturers. A separate report, meanwhile, gave the latest signal that the U.S. job market remains in better shape than economists expected. The number of U.S. workers applying for unemployment benefits last week unexpectedly declined in an indication of fewer layoffs.

Stocks of companies with big fuel bills also rose because of the easing of oil prices. Southwest Airlines gained 2.7%, and American Airlines flew 4.9% higher. Ralph Lauren jumped 13.9% after reporting stronger profit and revenue for the latest quarter than analysts expected. They helped offset a 1.8% drop for Nvidia, which is one of Wall Street's most influential stocks because of its immense size. The chip company reported stronger profit and revenue for the latest quarter than analysts expected, while also forecasting revenue for the current quarter that cleared analysts' estimates. The broad AI industry is also getting criticism for becoming too expensive, as well as too circular as Nvidia has bought ownership stakes in companies that use its own chips that drive Nvidia's revenue. Walmart has resonated with Americans who have grown increasingly cautious about where they spend their money with inflation taking a bigger bite out of pay-checks.

In stock markets abroad, indexes were mixed in Europe following bigger moves in Asia. South Korea's Kospi Kospi jumped 8.4% thanks to strength for technology stocks. Samsung Electronics leaped 8.5% after its labor union and management reached an agreement late Wednesday that averted a strike. SK Hynix, a chip company partnering with Nvidia, leaped 11.2%. Tokyo's Nikkei 225 jumped 3.1% while indexes fell 1% in Hong Kong and 2% in Shanghai.

The yield on the 10-year Treasury briefly got near 4.63% in the morning before falling back to 4.55% following the midday turnaround for oil prices. That's down from 4.57% late Wednesday and from 4.67% the day before. Some of the biggest beneficiaries of lower yields can be the smallest companies, many of which need to borrow money to grow. The Russell 2000 index of the smallest U.S. stocks climbed 0.9%, far more than the rest of the market.

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