World stocks climb on chip rally; dollar steadies near one-year high

"When you get the magnitude of that move, it's not surprising to us that we would get a little bit of a pause, some consolidation and rebalancing where investors are taking profits off the table."

In Europe, the broad STOXX 600 rose 0.80%. MSCI's gauge of stocks across the globe rose 0.37%.

"Technology is a long-duration asset as the story plays out, not necessarily in the next six months. And when you have the Fed come out with a more hawkish tone, long-duration assets are going to sell off in that time period," Dizard said.

 U.S. inflation data on Thursday broke above 4% annually for the first time in three years as the Middle East conflict boosted energy prices, but the monthly reading was slightly below expectations, helping to push yields lower.

The yield on benchmark U.S. 10-year notes fell 0.59 basis point to 4.394%. The 2-year note yield fell 1.2 basis points to 4.125%.

OIL BACK TO PRE-WAR LEVELS

Oil prices edged higher but were still near levels last seen before the start of the U.S.-Israeli war with Iran, as expectations of rising supply from the Middle East outweighed demand concerns.

Brent crude futures settled up 2% at $75.26 a barrel.

In currencies, the dollar fell against major peers but remained near its highest level in a year.

The euro was last at $1.137, a whisker above Wednesday's 13-month low, while the Japanese yen was near its lowest in 40 years against the dollar, with more intervention widely expected from Tokyo after the last bout around May did not stem the currency's decline.

The yen was flat against the greenback at 161.80 per dollar.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.15% to 101.45.

Gold rose as the U.S. dollar fell. Spot gold rose 0.64% to $4,026.09 an ounce.

(Reporting by Chibuike Oguh in New York; additional reporting by Alun John; Editing by Kevin Liffey, Edmund Klamann, Rod Nickel)