Analysts said the stock gains were propelled by a mix of buyers: hedge funds as well as small and wealthy retail clients attracted by the market’s recent drop. Position trimming by institutions because of recent volatility pulled the market back from its highs in the final minutes of trading, writes Reuters.

The gains, led largely by financial stocks, came even as the latest drop in bond prices indicated higher interest rates. A lightly bid two-year government debt auction disappointed bond traders who were looking for bargain-minded investors to buy Treasuries hard hit in the recent market sell-off.