Fixed-income assets are perceived as a safe haven compared to equities, and the two have been moving with an inverse correlation this week. Low trading volumes have meant high volatility with both markets surging both higher and lower.
Stocks rose in volatile trading after alternating between gains and losses for most of the session. This comes after a wild session where the Dow erased a 600-point drop to close positive.
Investors have fretted over fears of a monetary policy mistake by the Federal Reserve, an ongoing government shutdown in Washington and potential signals the global economy may be slowing down.
Wall Street is also watching developments on the trade front as China and the U.S. try to strike a deal on trade — and the clock ticks down on the two nations' tariff cease-fire.
—CNBC's Fred Imbert and Eustance Huang contributed to this article.