US stocks bounced higher on Monday as rising oil prices lifted the energy sector and benchmark bond yields retreated slightly, tempering investors' worries about possible increases in global interest rates.
Exxon Mobil Corp led the Standard & Poor's 500 index higher, as NYMEX crude for July delivery jumped 1.7 percent to $65.89 on news that Saudi Arabia will keep Opec supply limits in place through July. Exxon's stock, up 1.1 percent at $83.58, also ranked among the Dow's top gainers.
Shares of Chevron Corp jumped 1.2 percent to $81.69. Lingering interest-rate worries carried over from last week, when a spike in benchmark US Treasury bond yields helped trigger a three-day slide in the stock market on concerns about inflation and higher borrowing costs.
On Monday, the benchmark 10-year US Treasury note's yield rose to 5.13 percent from 5.11 percent late Friday, while its price slipped 5/32. Prices and yields move inversely. Earlier the yield flirted with breaking above 5.15 percent, a level equity analysts said could have caused some panic selling in equities had it seen a decisive break above it.
The Dow Jones industrial average was up 42.10 points, or 0.31 percent, at 13,466.49. The Standard & Poor's 500 Index was up 7.08 points, or 0.47 percent, at 1,514.75. The Nasdaq Composite Index was up 10.16 points, or 0.39 percent, at 2,583.70.