U.S. stocks recouped some of their recent losses as oil prices stabilized and confidence grew in the Federal Reserve’s ability to contain inflation. The S&P 500 rose 0.8%, the Dow Jones Industrial Average gained 0.6%, and the Nasdaq Composite added 1.1%. Oil prices steadied after a sharp run-up, with West Texas Intermediate crude settling near $85 a barrel. Investors welcomed signs that energy costs may be peaking, easing pressure on the Fed to tighten aggressively.

The Federal Reserve has signaled it will keep raising interest rates to bring inflation back to its 2% target. Recent data showed consumer prices rising at a slower pace, boosting hopes that inflation may be contained without derailing economic growth. Treasury yields dipped, and the dollar weakened slightly.

Analysts cautioned that volatility could persist as markets weigh mixed economic signals. Still, the stabilization in oil and easing inflation fears gave stocks a reprieve after a turbulent stretch.