U.S. stocks rose after comments from a Federal Reserve official took the sting out of rising oil prices by suppressing Treasury yields.

The Dow Jones Industrial Average rose 624.16 points, or 1.18%, to 53686.11. The S&P 500 gained 81.11, or 1.06%, to close at 7747.71, within 0.7% of its record closing high. The tech-heavy Nasdaq Composite rose 366.23, or 1.4%, to 26584.06.

The yield on the policy-sensitive two-year Treasury declined 0.051 percentage point to 4.332%. The yield on the 10-year Treasury note fell 0.032 percentage point to 4.761%. The yield on the 30-year bond slipped 0.023 percentage point to 5.243%.

Federal Reserve Gov. Christopher Waller made a case for keeping rates on hold, calling for the patience to "give disinflation a chance." Waller said he would look for continued signs of disinflation in August price data before committing to a holding pattern.