Stocks seesawed Wednesday, finishing mixed in an improvement that followed several days of steep losses fueled by concerns about how interest rates staying higher for longer could impact the US economy.

The S&P 500 (^GSPC) finished just above the flatline, while the Dow Jones Industrial Average (^DJI) dropped 0.2%. The tech-heavy Nasdaq Composite (^IXIC) gained 0.2%.

The stock gains came in spite of a continued rise in the price of oil, which hit fresh 2023 highs on Wednesday, as well as an uptick in Treasury yields. The benchmark 10-year Treasury yield (^TNX) hit levels not seen in more than 15 years, moving above 4.6%. The recent surge in yields has weighed on risk markets like stocks.

The moves Wednesday followed a brutal sell-off the day before that saw the Dow post its worst day since March. Waning consumer confidence and a looming government shutdown brought more worry to investors already fretting about the Federal Reserve's message that rates likely haven't peaked yet.

Stocks have fallen in recent days as the market increasingly took onboard that borrowing costs would stay elevated for longer than hoped. But the signs of a recovery suggest some investors believe the shakeout may have been overdone, according to analysts.

On the oil front, West Texas Intermediate (CL=F) futures gained nearly 4% to settle near $94 a barrel while Brent (BZ=F) ticked up to almost $97.

Meanwhile, the prospect of a US government shutdown is increasingly preying on nerves as the weekend deadline for a budget deal nears. Late on Tuesday, the Senate put forward a 79-page bill to keep the government funded until Nov. 17, likely the last chance of averting closure.

Read more: How a government shutdown would impact your money: Student loans, Social Security, investments, and more

In individual stocks, Costco shares jumped after the retailer missed on same-store sales expectations but saw its earnings beat estimates.

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