NEW YORK (TheStreet) -- Stocks pared losses, though remained in the red, as moves higher in the energy sector lessened the pressure of a global bond selloff.
The Dow Jones Industrial Average was down 180 points at session lows. By midday, the blue-chip index was down just 52 points, or 0.3%. The S&P 500 was down 0.39%, and the Nasdaq declined 0.46%.
Crude oil rallied to $60 a barrel as the dollar weakened on the global bond rout. The price surge seemingly ignored a Goldman Sachs report which estimated the global oil market will be oversupplied by 1.9 barrels a day this quarter.
"Today's rally is sponsored in part by yesterday's drilling productivity report in the U.S. from the EIA, which points to a drop in U.S. oil production at a couple of key shale plays next month," said Matt Smith, commodity analyst at Schneider Electric. "This bullish influence is in conjunction with a sliding U.S. dollar amid a strong selloff in global bond markets and equity markets too."
U.S. bond yields hit their highest level since November on Tuesday. The yield on the 10-year Treasury note climbed to 2.29% during the session.
European markets were trading heavily in the red, pressured by the bond selloff. Germany's DAX was down more than 1%, while France's CAC 40 fell 0.85% and the FTSE 100 in London tumbled 1.2%.