Stocks have gotten a boost after data showed the U.S. economy grew faster than expected in the second quarter while a key inflation gauge held steady.
The U.S. Commerce Department revised its estimate for U.S. GDP growth for the second quarter to 2.2%, from a prior estimate of 1.5%. Meanwhile, the Fed's preferred measure of inflation rose at an annual rate of 3.4% in August, matching July's revised rate.
The data illustrates the economy's resilience to the war in the Middle East. Investors further pared bets on an October interest-rate increase by the Fed after the readings, now pricing in only a 37% chance of an increase. The retreat in rate-increase expectations kicked off a day earlier after a Fed official suggested the central bank isn't in a rush to raise rates.
The reversal has helped stem a rout in U.S. Treasurys, with the 10-year yield easing to 5.23% Wednesday after closing at its highest level since 2002 a day earlier.
Oil prices have eased in recent days as exports from the Middle East pick back up, though Brent crude is on the rise again Wednesday.