Key Highlights

● The S&P 500 gained for a third straight session.

● The index remains below its 52-week high.

● Rising Treasury yields and oil prices are acting as headwinds.

● The rally has been narrow, led by a handful of large stocks.

The S&P 500 rose for a third straight session. But the winning run has not been enough to carry the index back to its 52-week high, with the benchmark remaining roughly 100 points below that peak.

The streak has been meaningful, with the index gaining ground since the prior week's close and rising for the year overall, helped by a semiconductor rally.

Rising Yields Are a Headwind

One obstacle is the bond market, with long-dated Treasury yields climbing, posting their largest daily gain in a month. Higher yields make bonds more attractive relative to stocks and raise borrowing costs for companies and consumers, with rate-sensitive sectors such as utilities, real estate and consumer staples lagging.

The Federal Reserve added to that pressure, leaving its benchmark rate range unchanged but with two officials dissenting in favor of a hike, and the statement saying inflation remains elevated.

Oil, AI Jitters and Narrow Leadership

Energy prices have been another weight, with crude settling back above $100 a barrel after Yemen's Houthis claimed a missile attack on a Saudi refinery. Those worries resurfaced after the close, when Alphabet slid sharply in extended trading after missing estimates.

The rally has also been narrow, with the equal-weight S&P 500 slipping slightly while the cap-weighted index rose, meaning the biggest companies did much of the lifting, though strong corporate earnings have been the bull case.