U.S. stocks on Wednesday mustered modest gains following a dramatic turnabout, with all three key equity benchmarks recovering from losses of at least 1% which were partly driven by signs that global economic growth was slowing as the U.S. – China trade war intensifies.
How did benchmarks perform?
The Dow Jones Industrial Average DJIA, +1.16% finished 22.45 points lower, or less than 0.1%, to 26,007.07, after sinking 2.3% or 589 points, at the session low. The S&P 500 index SPX, +1.64% finished 2.21 points, or 0.1%, higher at 2,883.98, after skidding nearly 2%, while the Nasdaq Composite Index COMP, +1.98% gained 29.56 points, or 0.4% to 7,862.83, reversing an intraday 130-point slide in the technology-heavy index.
The reversal for the Dow and S&P 500 represents their biggest turnarounds since Dec. 27, 2018, according to Dow Jones Market Data.
On Tuesday, the Dow rose 311.78 points, or 1.2%, to end at 26,029.52, while the S&P 500 index climbed 37.03 points, or 1.3%, to close at 2.881.77, while the Nasdaq Composite Index COMP, +1.98% surged 107.23 points, or 1.4%, to finish at 7,833.27.
What’s driving the market?
U.S. equity markets shook off losses to turn higher late in a thinly traded summer market, with little substantive news to drive the afternoon ascent.
Stocks initially sank as U.S. Treasury and European government bonds yields plumbed fresh lows. The 10-year Treasury TMUBMUSD10Y, +1.82% fell below 1.70%, falling to an intraday nadir at 1.60%, around the lowest since late 2016, but were backing up in late-session trade Wednesday. Meanwhile, comparable German bonds TMBMKDE-10Y, +4.71% hit a record low at negative 0.59%.
“I don’t think there’s any exact headline or data point that turned the markets around but I think investors are becoming more rational about the economic environment we’re in,” Lindsey Bell, investment strategist at