Three major indices on Wall Street ended their five-day losing streaks on Thursday despite staying on track for a weekly loss.
The Dow Jones added a moderate 0.55 percent or 183.56 to close at 33,781.48. The S&P 500 closed at 3,963.51, adding 29.59 points or 0.75 percent. Meanwhile, the tech-leaning NASDAQ posted the biggest growth at 1.13 percent, gaining 123.45 points to close at 11,082.00.
Tech companies were the largest contributors to Thursday's rally. Shares of chipmaker Nvidia rose by 6.5 percent, Amazon gained 2.14 percent and Microsoft gained 1.2 percent.
The most notable weight in the tech sector was Activision Blizzard. It was down 1.5 percent after the U.S. Federal Trade Commission said it would sue Microsoft for its plan to acquire the video game company.
The FTC said the acquisition could increase the mega-tech company's grip on the industry. Authorities in other countries are also looking into the acquisition deal.
Healthcare and retail sectors also saw gains. Pfizer rose by 3.1 percent and Nike saw a 2.8 percent growth.
The energy and communication services sectors, on the other hand, declined. The U.S. crude oil traded 0.8 percent lower at $71.46 per barrel, and the shares of ConocoPhillips dropped by two percent. T-Mobile's stocks in the U.S. also plunged 3.3 percent.
Smaller companies in the U.S. also posted growth yesterday, as shown by a 0.16 percent raise in the Russell 2000 index. The index gained 11.39 points and closed at 1,818.29.
The 10-year Treasury yield rose to 3.49 percent from 3.42 percent. This yield helps set the mortgage rate, with a higher yield indicating higher mortgage rates.
In the past week, the stock market slumped because investors were worried about inflation, the central bank's interest rate hikes and the possibility of a recession. Charles Schwab Corporation head of global investment strategy Jeff Kleintop said the market would continue to swing between gains and losses.
"We'll continue to see outsized moves in the markets over the coming months," Kleintop said. "We're going to be feeling our way through and there's going to be a lot of volatility."
Investors pay close attention to economic data released by government agencies. On Thursday, the job reports showed that U.S. labor remained tight despite unemployment claims rising. Analysts have explained that a low unemployment rate is good for the overall economy but challenges the Fed's efforts to bring down inflation.
The Fed also faces a challenge from consumer spending, which stays resilient despite the sharp price increases. According to analysts, the high consumer spending showed that the U.S. economy was strong enough to keep it out of a recession. On the other hand, the Fed may continue its hawkish monetary policy, resulting in an inevitable recession.
Since March this year, the central bank has raised the benchmark interest rate in succession, placing it at a 15-year high. The Fed will conduct another rate-setting meeting next week. Most investors expected a 50 basis point increase.
On Friday, investors can check wholesale price reports to see how inflation affected businesses in November.
Asia's stock markets rise
Stock markets in Asia also posted gains. Hong Kong's Hang Seng index gained 1.5 percent and closed at 19,726.07. The Shanghai Composite index rose by 0.2 percent, closing at 3,203.57.
In Japan, the Nikkei 225 index saw a 1.3 percent gain and concluded the trading day at 27,924.81. Meanwhile, the Kospi index in South Korea gained a moderate 0.4 percent to 2,380.87.
Analysts said the relaxation of COVID-19 measures in China helped lift the Asian stock market. Nonetheless, they warned that the country would face challenges in reviving its economy.