Wall Street stocks recovered from a shaky start to settle broadly higher on Thursday, as the benchmark indices more than made up for losses previously in the holiday-shortened week.

The S&P 500 increased 1.8%, with more than 85% of the firms in the benchmark index rising. The Dow Jones Industrial Average increased by 1.3%, while the Nasdaq increased by 2.7%.

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Technology companies accounted for a large portion of the gains, as Microsoft recovered from an early drop. Bond yields have fallen.

The S&P 500 advanced 75.59 points to 4,176.82. Since teetering on the brink of a bearish trend two weeks ago, the index has rebounded by 7.1%.

The Dow added 435.05 points to 33,248.28, while the Nasdaq gained 322.44 points at 12,316.90.

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Rising energy prices have been feeding inflation, which is already at its highest levels in four decades. U.S. gasoline prices hit another record high Thursday, with the average price at the pump costing $4.71 per gallon, according to motoring club federation AAA.

Technology stocks, whose lofty values tend to give the broader market a harder push higher or lower, accounted for a big share of the rally Thursday. Chipmaker Nvidia jumped 6.9% and software maker Adobe rose 5.5%.

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Communications stocks, companies that rely on direct consumer spending and some big industrial firms gained ground. Facebook parent Meta Platforms rose 5.4%, Expedia Group added 6.3% and Boeing climbed 7.5%.

Small-company stocks rose, signalling confidence about economic growth. The Russell 2000 gained 42.85 points, or 2.3%, to 1,897.67.

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Bond yields were relatively stable. The yield on the 10-year Treasury, which helps set interest rates on mortgages and other loans, fell to 2.91% from 2.93% on late Wednesday. Energy stocks fell. Chevron slipped 0.2%.

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Investors continue monitoring corporate earnings and financial updates. Microsoft rose 0.8%, recovering from an early slide, after cutting its financial forecasts for the current quarter. The software pioneer cited unfavourable changes in exchange rates. Online pet store Chewy surged 24.2% after reporting strong earnings.