Stocks rose and Treasury yields fell after comments from Federal Reserve officials fueled speculation that the central bank will take another break from raising interest rates. Following its biggest rally since April, oil fell slightly.

The S&P 500 advanced for the third day in a row, with some analysts citing a recovery from oversold levels. Amazon gained during its Prime Day fall sale. PepsiCo rose on the back of a positive forecast. A measure of Chinese shares listed in the United States rose 3.1% after a report revealed that the Asian country is considering new economic stimulus. European stocks rose the most since November 2022.

Treasuries rose, catching up with the global bond rally on Monday, when US cash trading was halted. Ten-year yields have dropped 15 basis points to 4.65%. Fed swaps predict that the Fed will remain on hold in December, compared to 60% odds of another hike by then just a week ago. The dollar dropped for the fifth consecutive day, its longest losing streak since July.

In a week full of speeches from US central bank officials, Fed Bank of Atlanta President Bostic said policy is restrictive enough to bring inflation down to the 2% target. Rising yields, according to his Minneapolis counterpart Kashkari, may mean the Fed has to do less.