NEW YORK: Global stocks rallied on Wednesday after recent losses as benchmark U.S. Treasury yields eased from three-month highs and oil prices fell below $90 a barrel.

The dollar surged to a 24-year peak against the yen and a 37-year high versus sterling, but the dollar index was lower on the day.

Brent crude futures touched their lowest since early February, falling below levels seen prior to Russia's invasion of Ukraine. Data showing China's export growth slowed in August fueled demand worries.

Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said given the oversold conditions of stocks, it did not take much to create a bounce.

Oil prices fell and the dollar index weakened, and "those are two good catalysts," she said.

Benchmark U.S. Treasury yields slipped after earlier hitting three-month highs, with the 10-year note yield last at 3.28%, ahead of Federal Reserve Chair Jerome Powell's speech on Thursday.

Concerns that inflation will remain persistently high and keep driving interest rates higher had lifted yields in recent weeks.

Investors have been anxious for more news from central banks on the trajectory of global interest rates.

The European Central Bank is widely expected to raise interest rates sharply when it meets this week, while the U.S. central bank is expected to raise rates by another 75 basis points at its Sept. 20 to 21 meeting.

All major S&P 500 sectors rose on the day apart from energy , which fell 1.2% with the slide in oil prices.

The Dow Jones Industrial Average rose 435.98 points, or 1.4%, to 31,581.28, the S&P 500 gained 71.68 points, or 1.83%, to 3,979.87 and the Nasdaq Composite added 246.99 points, or 2.14%, to 11,791.90.

The pan-European STOXX 600 index lost 0.57% and MSCI's gauge of stocks across the globe gained 1.06%.

U.S. stocks had been selling off since mid-August after hawkish comments from Powell and signs of an economic slowdown in Europe and China.

Helping the U.S. dollar recently, Japan's dovish monetary policy and Europe's economic problems have contrasted with a relatively stronger U.S. economy and a hawkish Fed.

The U.S. currency soared as high as 144.99 yen, hitting the level for the first time since August 1998. It is now within a large leap of its 1998 high of 147.43. The dollar was last up 0.9% at 144.09 yen.

Against sterling, the greenback hit $1.1407, the lowest since 1985 and last down 0.1% at $1.1509.

Liz Truss, who took over as Britain's prime minister on Tuesday, vowed immediate action to help the economy, which faces double-digit inflation and an expected lengthy recession.

The euro fell below 99 cents after dipping as low as $0.9864 on Tuesday, its lowest since October 2002.

On Wednesday, Europe's single currency was last up 0.8% at US$0.9985, and the U.S. dollar index, which measures the greenback against a basket of currencies, was last down 0.7%.

In the energy market, Brent crude futures settled down $4.83 at $88 a barrel, falling below $90 a barrel for the first since Feb. 8. U.S. West Texas Intermediate crude settled down $4.94, or 5.7%, to $81.94, its lowest since January.

Spot gold added 0.9% to $1,716.70 an ounce.

(Additional reporting by Karen Brettell and Gertrude Chavez-Dreyfuss in New York and Elizabeth Howcroft in London, Editing by Angus MacSwan, William Maclean, Josie Kao and Deepa Babington)