US stocks posted a major reversal in the last hour of trading on Wednesday as Wall Street resumed its comeback from recent market lows.
The major averages surged higher after remaining in the red for most of the day. The Dow Jones Industrial Average jumped 105 points, or 0.3%. Earlier today, the Dow Jones Industrial Average fell 429.88 points. The S&P 500 rose 0.3% and the Nasdaq Composite advanced 0.2%.
After a harsh September close, stocks have surged in the previous two sessions to start the week, month and quarter, with the S&P 500 posting its biggest two-day gain since 2020, as prices tumbled from multi-year highs. On Wednesday, though, Rates rose sharply, with the benchmark 10-year Treasury yield rising 14 basis points to 3.761% after briefly dropping below 3.6% in the previous session. This put pressure on the stock for much of the day.
In its latest report, the ADP said private payrolls increased by 208,000, topping Dow Jones estimates. Traders are looking forward to Friday’s non-farm payrolls report. On Wednesday, the ISM services index for September was also released Shows strong growth for the month of September.
Some market participants questioned whether these signs might mean that markets have finally settled on the bottom after sharp declines in the previous quarter.
“The third-quarter earnings reports are not too far off, and the market psychology is certainly that the second-quarter earnings season helped stabilize the markets,” Ma said. “There was a lot of pessimism in the market that was able to recover quite strongly a couple of months ago. There is now also hope that earnings season can stabilize the market and maybe come to the rescue again, the way it did last quarter.”
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