Stock market today: Wall Street rallies as pressure relaxes from the bond market

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U.S. stocks are rallying Tuesday as pressure on Wall Street from the bond market comes off the boil.

The S&P 500 was 0.7% higher in afternoon trading and on track for a third straight gain. The Dow Jones Industrial Average was up 176 points, or 0.5%, as of 1:05 p.m. Eastern time, and the Nasdaq composite was 0.7% higher.

High rates and longer-term yields knock down prices for stocks and other investments, while slowing the economy in hopes of undercutting high inflation. The Fed's next announcement on interest rates is due Nov. 1. Traders are now betting on a 74% chance that the year will end without any more Fed rate hikes, according to data from CME Group. That's up from the 53% chance seen a week ago.

On Wall Street, some of Monday's big stock moves also retraced themselves. Stocks of defense contractors that make weapons gave back some of their big gains, and Northrop Grumman slipped 1%. L3Harris Technologies fell 1.7%, though both are still up more than 8% for the week. This could be the first quarter in a year where S&P 500 companies report stronger profits versus year-ago levels, and analysts are forecasting a broad 0.3% decline, according to FactSet.In the latest signal of trouble in China's rattled property development industry, Country Garden warned that it likely won't be able to make some debt repayments when due and that its sales were under "remarkable pressure.

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