The Dow Jones Industrial Average traded 43 points higher, while the S&P 500 tried to snap a five-day losing streak. The Nasdaq Composite outperformed, rising 0.7 percent.
A rebound in tech shares helped boost the major indexes on Thursday. Facebook, Alphabet and Apple all rose about 1 percent. Netflix, meanwhile, gained more than 2 percent.
Tech's bounce came after the U.S. government said the consumer price index rose 0.1 percent in September, well below the expected gain of 0.2 percent.
These data pushed Treasury yields fell from multiyear highs. The 10-year Treasury note yield traded at 3.167 percent while the two-year yield slipped to 2.848 percent.
"Net, net, the economy may be running hot, but it isn't fast enough to kick up inflation pressures and calls into question the need for Fed policymakers to move interest rates to higher levels," Chris Rupkey, chief financial economist at MUFG Union Bank, said in a note.
Rising U.S. Treasury yields had been keeping investors on their toes in previous sessions amid stoked fears that rising borrowing costs could slow down the economy. It also added concerns over what the future of U.S. monetary policy. The Federal Reserve has hiked rates three times this year and is largely expected to raise rates once more before year-end.
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Traders work on the floor of the New York Stock Exchange (NYSE) on October 10, 2018 in New York City.
International Monetary Fund managing director Christine Lagarde refuted Trump's claims, saying that she "would not associate" Fed Chair Jerome Powell "with craziness."
Stock futures indicated far steeper drops earlier in the day. At one point, Dow futures pointed to a more than 400-point drop at the open.
Thursday's moves come a day after the Dow sank more than 800 points and the S&P 500 dropped more than 3 percent. It was also the 28th time since 2011 the S&P 500 posted a more than 2 percent decline, according to data from Birinyi Associates. The data also shows the broad index has traded higher 59 percent of the time in the following day, averaging a gain of 1 percent. The index also falls 41 percent of the time after such a drop, and averages a decline of nearly 2 percent on those days.
Worries over fast-rising interest rates and a steep tech rout sent U.S. equities tumbling on Wednesday. International markets also fell on Thursday. Asia-Pacific stocks saw sharp declines by the region's market close, while European shares tumbled.