Sharjah 24 – AFP: US and European equities mostly moved higher on Thursday, rebounding following a bad day for tech shares as investors remain nervous about surging global inflation and the prospect of rising interest rates.

New York's Nasdaq was up 1.9 percent in late morning trading, a day after it fell into correction territory -- a decline of greater than 10 percent from its most recent peak hit in November -- as companies traded in the tech-heavy index are more susceptible to the prospect of higher borrowing costs.

The Dow Jones Industrial Average was up 1.2 percent while the S&P 500 rose 1.4 percent.

The coming end of the era of ultra-cheap cash -- which helped fuel a near two-year equity rally and economic rebound -- has weighed on global markets for months.

Fears that the US Federal Reserve may need to raise rates aggressively as it battles soaring inflation, which has been stoked by a cocktail of surging demand, supply chain snarls, rising wages and a spike in energy prices, have in recent days led to a surge in bond yields and a sell-off in stocks on Wall Street.

In Europe, both Paris and Frankfurt ended higher.

But London's FTSE 100 dipped less than a tenth of a percentage point.

But oil prices continued their strong run-up this week on the back of expectations for improved demand as economies reopen and as unrest in the crude-rich Middle East sparks supply concerns.