Stocks edge higher as Wall Street looks to recover from its sharpest decline in months.

Stocks rebounded on Wednesday as government bond yields drifted lower.

The S&P 500, the U.S. benchmark, rose about 0.3 percent in midday trading, after dropping 2 percent on Tuesday, the most since May. An increase in bond yields — the yield on 10-year Treasury notes climbed above 1.5 percent on Tuesday for the first time since June — had incited a sell-off in technology stocks, which dragged markets down.

On Wednesday, the yield on the 10-year ticked down about 0.01 percent, or one basis point, but remained above 1.5 percent. The Stoxx Europe 600 rose 0.6 percent after falling 2.2 percent the previous day.

Markets have been more volatile in recent weeks as investors prepare for the Federal Reserve to reduce stimulus, something policymakers have signaled will come this year. Traders are also adapting to the economic recovery from the pandemic, which includes an unusual combination of supply chain bottlenecks, labor shortages in some industries, higher unemployment and rising consumer prices.

In Washington, lawmakers remain deeply divided over spending and raising the nation’s debt limit. On Tuesday, Treasury Secretary Janet L. Yellen warned lawmakers of “catastrophic” consequences if Congress failed to raise or suspend the statutory debt limit.

A measure of stock market volatility rose sharply on Monday but was only the highest in about a week, as stocks have stumbled in September. Last week, traders were unnerved by potential fallout from a default of China’s Evergrande Group, a beleaguered residential developer with $300 billion in debt. The Chinese government has shifted away from the policies that have guided its economy in recent years, tightening regulation on online gaming, data sharing by tech companies, and property developers.

Despite a tentative recovery on Wednesday, stocks in the United States are still on track for a decline in September, which would end seven consecutive months of gains. The S&P 500 was down more than 3.5 percent for the month and at levels not seen since July after Tuesday’s close. The Nasdaq composite was slightly lower on Wednesday and was 4.7 percent lower for the month after Tuesday’s declines.