The Dow Jones Industrial Average was up 371.12 points, or 1.43 per cent, to 26,378.19 on Thursday. The S&P 500 rose 54.11 points, or 1.88 per cent, to 2,938.09. The Nasdaq Composite Index rallied 176.33 points, or 2.24 per cent, to 8,039.16, Xinhua reported.
The US Benchmark 10-year Treasury note yield traded at around 1.72 per cent on Thursday, bouncing back from a low of 1.62 percent registered in the previous session.
Bond yields plummeted around the world on Wednesday as investors piled into safer assets on worries over the global economy. Bond yields' declines could also fuel pullbacks in the stocks market.
On the economic front, in the week ending Aug 3, the advance figure for seasonally adjusted initial claims was 209,000, a decrease of 8,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 215,000 to 217,000, according to the US Labor Department on Thursday.
The four-week moving average was 212,250, an increase of 250 from the previous week's revised average. The previous week's average was revised up by 500 from 211,500 to 212,000, said the department.
In corporate news, Lyft reported quarterly earnings results that beat market expectations Wednesday after market close. It reported revenue of USD 867.3 million, an increase of 72 per cent year-over-year.