The Dow Jones industrial average rose 1.08 to 5,475.14. The barometer of big U.S. companies, which staged an abrupt turnaround with the broad market late yesterday, was in positive territory most of the session, gaining nearly 30 at one point.
Advancers led decliners by about 4 to 3 on the New York Stock Exchange, with 1,335 up, 995 down and 802 unchanged. NYSE volume totaled 403.71 million shares vs. 427.81 million in the previous session.
On Wednesday, a steep sell-off transformed into a broad rally after a surprisingly strong auction of new U.S. Treasury debt sent long-term interest rates tumbling below 7 percent.
On Thursday, bonds moved lower and the yield on 30-year Treasuries - a benchmark used to set the rate charged on many types of loans - edged above 7 percent after hovering at 6.99 percent most of the day.
Some analysts attributed Thursday's weakness in bonds to concerns about tomorrow's report on inflation in April producer prices.
The Dow and broader blue-chip indexes have been struggling in recent weeks amid inflation worries and the persistent rise of interest rates, which threatens corporate profit growth and makes bonds an attractive investment.
Despite the rise in interest rates today, broad stock measures were positive. The NYSE composite rose 0.63 to 346.61. The S&P 500 rose 0.66 to 645.44. The Nasdaq composite index gained 4.11 to 1,187.54.
At the American Stock Exchange, the market value index rose 2.57 to 587.21.