The Nasdaq Composite is on track for its second consecutive monthly loss;
the 30-year US Treasury yield climbs to its highest level in 19 years.
The Dow Jones posted its biggest daily gain in seven weeks.
Major U.S. stock indexes closed with broad gains on Thursday, as chipmakers' shares rebounded after tech giant Microsoft delivered an excellent outlook that eased concerns about massive spending on artificial intelligence infrastructure.
Meanwhile, U.S. economic growth slowed in the second quarter as the trade deficit widened. Data showed the economy expanded at a rate of 1.5%, below expectations of 2.1%.
Bond markets remained jittery, with the 30-year Treasury yield rising to 5.24%, its highest level in 19 years.
Traders now expect a 59% probability of an interest rate hike at the Federal Reserve's September meeting, according to FedWatch, down from 82% a week ago.
The
Dow Jones Industrial Average rose 1.2%, or 613 points, on Thursday, marking its biggest daily gain in seven weeks.
The S&P 500 rose 1.7%, rebounding from its lowest level in over a month. The Nasdaq Composite also jumped 2.8%, ending a six-session losing streak, but it remains down more than 4% since the beginning of July and is on track for its second consecutive monthly loss.