NEW YORK/LONDON – Global bond yields fell and major stock indexes rose on Thursday as oil prices pulled back from recent four-year highs, while the Japanese yen surged following reports of government intervention in foreign exchange markets to support the currency.

U.S. crude futures (CLc1) fell 2.02% to $104.72 per barrel, while Brent crude (LCOc1) declined 3.39% to $114.03 per barrel.

Market sentiment improved as energy prices eased, even as geopolitical tensions persisted. Iran said it would respond with “long and painful strikes” on U.S. positions if Washington renewed attacks, and reaffirmed its control over the Strait of Hormuz, raising concerns over global energy shipping routes and complicating efforts to assemble a coalition to reopen the waterway.

In central bank developments, the European Central Bank and the Bank of England left interest rates unchanged. The Federal Reserve also held rates steady on Wednesday but delivered a more hawkish tone, with three policymakers voting to remove the easing bias from the statement in the most divided decision since 1992.

“Yields are moving lower because the price of oil is coming down. That’s helping stocks, as well as some of the earnings reports that were good,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Equities were broadly supported by corporate earnings, particularly in the technology sector. Shares of Alphabet rose sharply after reporting a record quarter for its cloud business. Apple is scheduled to release earnings after the closing bell.

The S&P 500 and Nasdaq were on track to post their strongest April performance since 2020.

In U.S. trading, the Dow Jones Industrial Average rose 669.39 points, or 1.37%, to 49,530.40. The S&P 500 gained 30.40 points, or 0.43%, to 7,166.35, while the Nasdaq Composite edged up 12.65 points, or 0.05%, to 24,685.40.

MSCI’s global equity index rose 0.50% to 1,072.92, while Europe’s STOXX 600 advanced 1.38%.

Currency markets were dominated by a sharp move in the yen after reports that Japanese authorities intervened to support the currency. According to sources familiar with the matter, officials stepped in to buy yen after it weakened to its lowest level against the dollar since July 2024.

The dollar fell as much as 3% against the yen to 155.5, marking its steepest one-day decline since late December 2024. It was last down 2.36% at 156.51 yen.

In bond markets, the yield on benchmark 10-year U.S. Treasury notes fell 1.8 basis points to 4.398%, from 4.416% on Wednesday. Two-year UK gilt yields slipped back below 4.5%, while German two-year yields also eased after an extended rally.

Oil markets saw volatile trading earlier in the session, with intraday swings exceeding 10 percentage points. Brent crude briefly climbed to $126.41 before reversing sharply and trading near $113.50, still nearly double its level at the start of the year.

On the policy front, outgoing Federal Reserve Chair Jerome Powell confirmed he will remain a governor for now to help defend the institution’s independence as his potential successor, Kevin Warsh—backed by U.S. President Donald Trump—moves closer to confirmation.

-Reporting by Caroline Valetkevitch and Marc Jones; Editing by Timothy Heritage and Nick Zieminski / Reuters